1. Which of the following represents an investment decision? A. Exxon Mobil spends $12 billion buying back shares. B. GlaxoSmithKline spends $4 billion on research and development for new drugs C. Tesla repays $465 million loan it received from the US Department of Energy D. Twitter raises $2.1 billion in its initial public offering (IPO). E. Pfizer issues new shares of common stock. 2. Which of the following represents a financing decision? A Intel decides to spend $1 billion to develop a new microprocessor B. Volkswagen borrows 350 million euros (350 million) from Deutsche Bank. C. BP constructs a pipeline to bring natural gas onshore from a production platform in the Gulf of Mexico D. Budweiser spends 200 million to launch a new brand of beer in European markets E. Pfizer buys a small biotech company. 3. Which one of the following is the best description of the goal of the financial manager in a publicly traded corporation? A. maximize sales B. increase the total assets of the firm C. maximize the current net income of the firm D. increase the number of shares outstanding E. maximize the stock price 4. Which of the following actions are likely to reduce agency conflicts berween stockholders and managers? A. Paying managers a large fixed salary. B. Increasing the threat of corporate takeover. C. Executive compensation in the form of stock options. D. Answers A and C are correct E. Answers B and C are correct 5. The separation of ownership and control is both an advantage and a disadvantage of the corporate organizational form. A. True. B. False. 6. The board of directors has the power to act on behalf of the sharcholders to hire and fire the operating managers of the firm. In a legal sense, the directors are "principals" and the sharcholders are "agents. A. True. B. Falsc. 7. The intent of the Sarbanes-Oxley Act of 2002 is to protect the public from accounting fraud and financial malpractice A. True. B. False