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Unformatted text preview: * Primary goal of a firm is to increase (maximize) the stock price. Not to just maximize profits! Reason being, profit maximization fails to ignore risk, time value, size of cash flows. Partnership: -At least 2 people-General partner works the operation-Limited partner(s) front the cash-Provisions should always be in a written contract-Advantages: easy to start, more capital available, taxed once as income-Disadvantages: Unlimited liability for general, partnership dissolves if one dies or sells there part, difficult to transfer ownership....
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- Spring '08