(3p) 1. The long-run goal of the firm is to A maximize earnings per share. increase sales regularly C hold large quantities of cash. D. maximize shareholder wealth (2p) 2. Maximizing shareholder wealth means maximizing the A value of the firm's Investments (8. market value of the firm's common stock. C value of the firm's profits. D. value of the firm's cash. E value of the firm's assets. 3. Problems and conflicts resulting from the seperation of the management and ownership of a firm are called as ................... Problems. (3p) A. Unavoidable B. Gigantic C. Agency D. Communication Income Sharing (3p) - 4. Advantages of the corporation include a) transferability of ownership. b) unlimited liability. c) ability to raise capital. d) double taxation of dividend income. A. a and c. B. a and b. C. a, b and c D. b, c and d E. cand d 5. A market in which securities are offered for the first time for sale to potential investors is called .................... Market. (3p) A. Primary B. Initial C. Fresh D. Liquidity E. Emerging