Finance questions

The primary goal of financial management is most associated with increasing the:

market value of the firm

The issuer of a security must be involved in all _____ transactions involving that security.

primary market

The primary goal of financial management is to maximize:

the market value of existing stock

Which one of the following is most apt to align management's priorities with shareholders' interests?

Compensating managers with shares of stock that must be held for a minimum of three years

The potential conflict of interest between a firm's owners and its managers is referred to as which type of conflict?

agency

The shareholders of Qiang's Markets would benefit if the firm were to be acquired by Better Foods. However, Weil's board of directors rejects the acquisition offer. This is an example of:

an agency conflict

Probably the least effective means of aligning management goals with shareholder interests is:

automatically increasing management salaries on an annual basis.

Which one of the following situations is most apt to create an agency conflict?

basing managment bonuses on the length of employment

One example of a primary market transaction would be the:

sale of 1,000 shares of newly issued stock by Alt Company to Miquel.

You contacted your stock broker this morning and placed an order to sell 300 shares of a stock that trades on the NYSE. This sale will occur in the:

secondary market

An agency issue is most apt to develop when:

the control of a firm is separated from the firm ownership

The goal of financial management is to increase the:

current market value per share