fin doc
Top of Form
1.
__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
Financial management
Profit maximization
Agency theory
Social responsibility
2.
Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored.
principals; agents; agents
agents; principals; principals
principals; agents; principals
agents; principals; agents
3.
__________ is concerned with the maximization of a firm's earnings after taxes.
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization
4.
What is the most appropriate goal of the firm?
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization.
5.
Which of the following statements is correct regarding profit maximization as the primary goal of the firm?
Profit maximization considers the firm's risk level.
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
Profit maximization does consider the impact on individual shareholder's EPS.
Profit maximization is concerned more with maximizing net income than the stock price.
6.
__________ is concerned with the branch of economics relating the behavior of principals and their agents.
Financial management
Profit maximization
Agency theory
Social responsibility
7.
A concept that implies that the firm should consider issues such as protecting the consumer, paying fair wages, maintaining fair hiring practices, supporting education, and considering environmental issues.
Financial management
Profit maximization
Agency theory
Social responsibility
8.
Which of the
1.
__________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
Financial management
Profit maximization
Agency theory
Social responsibility
2.
Jensen and Meckling showed that __________ can assure themselves that the __________ will make optimal decisions only if appropriate incentives are given and only if the __________ are monitored.
principals; agents; agents
agents; principals; principals
principals; agents; principals
agents; principals; agents
3.
__________ is concerned with the maximization of a firm's earnings after taxes.
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization
4.
What is the most appropriate goal of the firm?
Shareholder wealth maximization
Profit maximization
Stakeholder maximization
EPS maximization.
5.
Which of the following statements is correct regarding profit maximization as the primary goal of the firm?
Profit maximization considers the firm's risk level.
Profit maximization will not lead to increasing short-term profits at the expense of lowering expected future profits.
Profit maximization does consider the impact on individual shareholder's EPS.
Profit maximization is concerned more with maximizing net income than the stock price.
6.
__________ is concerned with the branch of economics relating the behavior of principals and their agents.
Financial management
Profit maximization
Agency theory
Social responsibility
7.
A concept that implies that the firm should consider issues such as protecting the consumer, paying fair wages, maintaining fair hiring practices, supporting education, and considering environmental issues.
Financial management
Profit maximization
Agency theory
Social responsibility
8.
Which of the