1.1 The Financial Management Decision Process What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant. 1.2 Sole Proprietorships and Partnerships What are the four primary disadvantages to the sole proprietorship and partnershi forms of business organization? What benefits are there to these types of business organization as opposed to the corporal form? 1.3 Corporations What is the primary disadvantage of the corporate form of organization? Name at least two of the advantages of corporate organization. 1.4 Corporate Finance Organization In a large corporation, what are the two distinct groups that report to the chief financial officer? Which group is the focus of corporate finance? 1.5 Goal of Financial Management What goal should always motivate the actions of the firm's financial manager? 1.6 Agency Problems Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kin of problems can arise? 1.7 Primary versus Secondary Markets You've probably noticed coverage in the financial press of an initial public offering (IPO) of a company's securities. The social networking company Snapchat is a relatively recent example. Is an IPO a