1.The primary goal of a publicly-owned firm interested in serving its stockholders should be to

A. Maximize expected total corporate profit from investments

B. Maximize expected earnings per share (EPS).

C. Minimize the tax liabilities and costs

D. Maximize expected net income and operating costs.

E. Maximize the stock price per share.

2. A major advantage of the corporate form of business over both sole proprietorships and partnerships is the

A. limited liability.

B. reduction in taxes.

C. ease of formation.

D. reporting to security and exchange commission.

E. unlimited liability.