MidTerm Review Questions FINN3120
What is the primary goal of financial management for a sole proprietorship
Maximize the market value of the equity
A limited liability company (LLC)
Prefers its profits be taxed as personal income to its owners
The issuer of a security must be involved in all _____transactions involving that security
Primary Market
Levi had an unexpected surprise when he returned home this morning. He found that a chemical spill from a local manufacturer had spilled over onto his property. The potential claim that he has against this manufacturer is that of a(n)
Stakeholder
The daily financial operations of a firm are primarily controlled by managing the
Working capital
An agency issue is most apt to develop when
the control of a firm is separated from the firm's ownership
A corportation
Is a legal entity separate from its owners