You have just graduated and have taken a position with The Academically Challenged Brokerage firm. One of the firms biggest clients of the firm is Sir-Tugs-A-Lot a tug boat firm in the Dartmouth harbour. Your first assignment is to convince a new client to use the services of the firm.

i. Why is corporate finance important for the client? (2 marks)

ii. What is the primary objective for the financial manager? (2 marks)

iii. What are the three basic forms of the business organization available for your client? Provide 2 attributes (characteristics) of each business form. (3 marks)

iv. In each business form, could you experience an agency problem? (2marks)