Exercise1 Ch1

Exercise1 Ch1 - Chapter 1 some exercise problems 1. a. b....

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Chapter 1 some exercise problems 1. The process of planning and managing a firm’s long-term investments is called: a. working capital management. b. financial depreciation. c. agency cost analysis. d. capital budgeting. e. capital structure. 2. A business owned by a single individual is called a: a. corporation. b. sole proprietorship. c. general partnership. d. limited partnership. e. limited liability company. 3. The primary goal of financial management is to: a. maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock. c. avoid financial distress. d. minimize operational costs and maximize firm efficiency. e. maintain steady growth in both sales and net earnings. 4. A conflict of interest between the stockholders and management of a firm is called: a. stockholders’ liability. b. corporate breakdown. c. the agency problem. d.
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Exercise1 Ch1 - Chapter 1 some exercise problems 1. a. b....

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