1. The primary operating goal of a firm interested in serving its stockholders should be to A. Maximize its expected total profi. B. Maximize its assets. C. Maximize the stock price over the long run. D. Maximize its revenue. 2. Which of the following statements is correct? A. Shareholders of a corporation have unlimited liability, so they are personally liable for the debts of the corporation. B. One advantage of the corporate form of organization is that it avoids double taxation. C. Partnerships are subject to more government regulations than corporations. D. In general, it is relatively more difficult to raise capital for a proprietorship than a corporation. 3. Which of the following statements about financial markets is correct? A. An IPO (initial public offering) is a secondary market transaction. B. A SEO (seasoned equity offering) is a secondary market transaction. C. You buy life insurance from an insurance company, and the insurance company use the premium collected from you to invest in stocks issued by a corporation. This is an example of indirect transfe of capital. D. You recently sold 200 shares of Disney stock, and the transfer was made through a broker (such Fidelity or Robinhood). This is an example of a primary market transaction. 4. Which of the following is an example of a money market instrument? A. Commercial paper. B. U.S. Treasury bonds. C. Municipal bonds. D. Stocks. Which of the following items cannot be found on a firm's balance sheet under current liabilities? A. Accounts payable. B. Short-term notes payable. C. Accrued wages. D. Long-term bonds