1. Which one of the following baxiness types is best mited so naive large memess of eapitan? a) Limited liability company. b) Limited partnership. c) Sole proprietorship. d) General partnership. e) Corporation. 2. Given a firm with positive annual cash flows, which one of the following will increase the current value of that firm? a) Increasing the annual growth rate of the cash flows c) Decreasing the amount of each cash flow b) Increasing the discount rate d) Decreasing the life of the firm 3. Costs associated with the conflicts of interest between the bondholders and the shareholders of a corporation are called: a) Administrative costs. b) Financing costs. c) Agency costs. d) Legal costs. 4. The process of planning and managing a firm's long-term investments is called: e) Bankruptcy costs. a) Working capital management. b) Financial depreciation. c) Agency cost analysis. d) Capital budgeting. e) Capital structure. 5. The primary goal of financial management is to: a) Maximize current dividends per share of the existing stock. b) Maximize the current value per share of the existing stock. d) Minimize operational costs and maximize firm efficiency. c) Avoid financial distress. e) Maintain steady growth in both sales and net earnings