1.

The function of financial markets and institutions is:

to create economical booms and recessions.

to facilitate the flow of funds through the economy.

to manage portfolios of investors.

to look at decisions in firms from the financial manager's point of view.

2. Investments is taught from:

• the corporation's point of view.
• the investor's point of view.
• the portfolio manager's point of view.
• the market's point of view.

3. The appropriate goal of financial managers is to maximize

• shareholder wealth
• profits
• the firm's earnings per share
• all of the above

4.

Which of the following business entities is subject to double taxation?

All of the above

Corporation.

Partnership.

LLC.