1. Explain why profit maximization is not the best goal for a company. What is an appropriate goal and why?

2. Give an example of a conflict of an interest in a business setting (a personal one would work) other than the one involving the real estate agent discussed in the text.

3. Does maximize profit ignores the timing of future cash flows?

4. Why does conflicts of interest exist?

5. What are the major reasons for accounting scandals (WorldCom, Enron, etc.)? How do firms attempt to meet Wall Street analysts