1) The goal of the firm should be A. maximization of profitsB. maximization of shareholder wealthC. maximization of consumer satisfaction D. maximization of sales 2) An example of a primary market transaction isA. a new issue of common stock by AT&TB. a sale of some outstanding common stock of AT&T C. AT&T repurchasing its own stock from a stockholder D. one stockholder selling shares of common stock to another individual 3) According to the agency problem _________ represent the principals of a corporation. A. shareholdersB. managersC. employees D. suppliers 4) Which of the following is a principle of basic financial management?A. Risk/return tradeoffB. Derivatives C. Stock warrants D. Profit is king
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