1) What is the primary goal of corporate financial management? 2 Increased earnings. b. Maximizing cash flow. c. Maximizing shareholder wealth. d. Minimizing risk of the firm. 2) Agency theory deals with the issue of a when to hire an agent to represent the firm in negotiations. b. the legal liabilities of a firm if an employee, acting as a firm's agent, injures someone c. the limitations placed on an employee acting as the firm's agent to obligate or bind the firm d. the conflicts that can arise between the viewpoints and motivations of a firm's owners and managers