Question 4An investor is considering providing Howard with $50,000 as an initial investment.a. Explain five (5) risks associated with making such an investment for the Investor.b. Explain five (5) risks associated with taking such an investment for Howard.c. Do you believe that Howard’s business has high growth potential? Provide a detailed justification for your answer.

An entrepreneur is someone who assumes the major risks of a new business by committing which of the following? a) Equity b) Time c) Career d) All of the above.

Question 2 A private limited company is seeking to raise a large amount of finance to invest in a new project. Which of the following options would you recommend? A. Selling shares directly to the public B. Negotiating an overdraft C. An interest bearing bank loan D. All the above

46.When the economic method is used, the investor will recognize the investment income when: Select one: a. the company in which it invested reports income and the increase in the fair value of the investment. b. Receive dividends from the company you invested in. c. the company that invested reported income. d. the fair value of the investment has increased.

Multiple Choice Questions 1. The following are the factors to be considered in Suitability, except A. Environment B. Capabilities C. Expectations D. Scenarios 2. The ____________ for a firm is the internal rate of return on existing investments, based on real cash flows. A. cash flow return on investment (CFROI) B. Economic Value Added (EVA) C. Total Shareholders Return D. Return on Investment 3. The elements that must be considered in using EVA are as follows, except ___________. A. Reasonableness of earnings B. Appropriate cost of Capital C. Volatility of the market D. None of the above

Q6. Investment is an asset acquired or invested in to build wealth and save money from the hard earned income. Investment is primarily made to obtain an additional source of income or gain profit from the investment over a specific period of time.Some investor look for a long period according to their needs but some focus on short term period. For this purpose two types of analysises are important. One analysis attempts to calculate the intrinsic value of a stock using data such as revenue, expenses and growth prospective and another analysis uses best market activities, stock price trends and past data to predict activities in future. a.What is the difference in both analyses? b.Which analysis is useful for long term investor and financial advisors? Give the reasons with examples.

1. Cost of money Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds.   Determine which of these fundamental factors is affecting the cost of money in the scenario described: Risk   Inflation   Time preferences for consumption

a) Return calculations For each of the investments shown in the  table(Attached), calculate the rate of return earned over the unspecified time period. b) ETHICS PROBLEM Risk is a major concern of almost all investors. When shareholders invest their money in a firm, they expect managers to take risks with those funds. What do you think are the ethical limits that managers should observe when taking risks with other people’s money?

Question (1): Answer the following questions:  Discuss the differences among decision-making under certainty, decision making under risk, and decision-making under uncertainty. Drink Investment is incorporated in investing money in stocks of companies producing drinks. It plans to invest 2 shares and 1 Government bond and maximize the portfolio's annual return. State the name of the application that should be used in the previous case. ( ___________________ )

An investor wants to determine if his investment in Bulldogs Inc. gives him a good return. Which of the following is the most appropriate to use? a. Times interest earned ratio b. Dividend yield c. Total asset turnover d. Operating profit margin