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1. From the scenario for Katrina’s Candies, take a position as to whether government regulation is constraining or enabling in this situation, as it relates to the operational efficiency of the company. Speculate on the fundamental manner in which government regulation could impact the shareholders’ wealth and profitability.

2. Take a position on whether the banking industry needs more or less government regulation. Support your position with two (2) examples of the impact of regulation.

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