01 - during the year 6 Agency costs refer to the cost of...

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1. The primary goal of a publicly–owned firm interested in serving its stockholders should be to: maximize share price. 2. Limited liability is faced by the owners of: corporations. 3. IBM has decided to issue stock to fund a new project. When the stock is issued it will be sold on the: primary market. 4. The mixture of debt and equity used by a firm to finance its operations is called: capital structure. 5. Which one of the following actions is the best example of an agency problem? Paying management bonuses based on the number of store locations opened
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Unformatted text preview: during the year. 6. Agency costs refer to: the cost of the conflict between stockholders and management. 7. Unlimited liability is faced by the owners of: both sole proprietorships and general partnerships. 8. Net working capital is defined as: current assets minus current liabilities. 9. Which one of the following terms is defined as the management of a firm's long-term investments? capital budgeting 10. A business owned by a solitary individual who has unlimited liability for its debt is called a: sole proprietorship....
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