Answer Any 3 questions. Each question carries 5 marks
1. The Municipal Corporation of a small college town decides to regulate rents in order to reduce
student living expenses. Suppose the average annual market-clearing rent for a two bedroom
Chandrasekar is running a company manufacturing and selling electronic toy with the installed capacity of
1,00,000 quantities per annum. It is currently selling at 75,000 units. The cost sheet is given below:
Elucidate that shareholders wealth maximization is a better objective than profit after tax maximization.
Wealth maximization is a modern approach to financial management. Maximization of
profit used to be the main aim of a business and financial manag