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Terry
0450-19-M-J-11-4d
Chan
TOPIC QUESTION - PAPER 1
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Chan
June 21, 2021 at 5:41:45 AM
May/June 2019
Version 1
1.0 Understanding Business Activity
1.4 Types of Business Organization
YOUR ANSWER
Advantage: Able to raise large amount of funds
Explanation: FBH is able to easily raise $800 million from the public by issuing new shares in the stock market
Disadvantage: To many regulations
Explanation: FBH will have to follow many regulations, such as publishing their financial accounts. This will enable their competitors to identify FBG’s strategy and objectives, such as FBH's planning to 6500 bookshops in 20 countries
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