Question
1-1. What are some of the problems involved in implementing the goal of maximization of shareholder wealth? 1-3. What is the relationship between financial decision
1-1. What are some of the problems involved in implementing the goal of maximization of shareholder wealth? 1-3. What is the relationship between financial decision making and risk and return? Would all financial managers view riskreturn trade-offs similarly? 1-5.
Define (a) sole proprietorship, (b) partnership, and (c) corporation. 1-6. Identify the primary characteristics of each form of legal business organization. 1-7. Using the following criteria, specify the legal form of business that is favored: (a) organizational requirements and costs, (b) liability of the owners, (c) the continuity of the business, (d) the transferability of ownership, (e) management control and regulations, (f) the ability to raise capital, and (g) income taxes. 1-9. Like it or not, ethical problems seem to crop up all the time in finance. Some of the worst financial scandals are examined at http://projects.exeter.ac.uk/RDavies/arian/scandals/classic.html. Take a look at the write-ups dealing with The Credit Crunch, The Dot-Com Bubble and Investment Banks, and Bernard L. Madoff Investment Securities. Provide a short write-up on these events.
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