1. What is the rational for maximization of stock- holder wealth as a goal of the firm?

2.Financial Statements and Ratio Analysis provide some useful information about a company's operations and financial conditions.

They use current or past information.

What are the limitations, and what are some qualitative factors that should be considered when using this information?

"It is not uncommon for a company to report positive net income right up to the day it declares bankruptcy". How is this possible?