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