answer the following

1. Suppose there is a company, HilltopApex, which is publicly traded and operates four manufacturing plants in rural Virginia and West Virginia.

For decades, HilltopApex has been discharging affluent into nearby rivers and streams; the discharging meets the legal boundaries of acceptable discharges. That is HilltopApex is not breaking any laws. In the past month a new ownership group emerged and now owns a clear majority of the shares in HillTopApex. The new ownership group lets the mangers of HilltopApex know that they want the discharges stopped even though the cost of stopping the discharges will take away half of the expected profits for this year and next. To which of the following governance philosophies does the new ownership group most closely match?

A. Stockholder Capitalism

B. Stockholder Primacy.

C. Stakeholder Capitalism

D. Win at all costs as Jack Welsh (one time chairman of GE) said.

2. Suppose there is a company, HilltopApex, which is publicly traded and operates four manufacturing plants in rural Virginia and West Virginia.

For decades, HilltopApex has been discharging affluent into nearby rivers and streams; the discharging meets the legal boundaries of acceptable discharges. That is HilltopApex is not breaking any laws. In the past month a new ownership group emerged and now owns a clear majority of the shares in Hill TopApex. The new ownership group lets the mangers of HilltopApex know that they want the discharges stopped even though the cost of stopping the discharges will take away half of the expected profits for this year and next. In the language of externalities, the new ownership group is telling the world that it wants to

A. obtain a new set of owners.

B. internalize the externality it creates in the interest of environmental sustainability.

C. encourage a proxy fight for control of the company. D. use this as the beginnings of a new branding campaign.

3. To which balance sheet category below does shareholder primacy encourage growth?

A. Equity = Assets minus Liabilities.

B. Assets.

C. Liabilities

D. Assets less current assets and depreciation.

4. Which of the following generally defined categories of corporate governance have the largest number of entities who should benefit from the value created by a firm?

A. Stakeholder Capitalism.

B. Shareholder Primacy.

C. Bloom's Taxonomy.

D.The Constitution of the United States.

5. According to assigned reading material from the Corporate Finance Institute which of the following are criticisms of shareholder primacy?

A. Corporate decisions may have a short term benefit but not a longer term benefit.

B. The notion of shareholder primacy implies that firms are going to retain more earnings for investment in fundamental competencies than they otherwise would.

C. Shareholder primacy encourages firms to avoid legal tax liabilities.

D. Corporations are prohibited by law from hiring people they don't need.

6. The term "shareholder primacy" can be best summarized by which of the following?

A. The owners of the firm should benefit from the majority, beyond a reasonable doubt, of the firm's activities.

B. The owners of the firm should receive tax credits for the charitable donations of the firm whose shares they own.

C. The owners of the firm should benefit from all of the firm's activities.

D. Modern day firms should expand their focus and distribution of revenues to include activities that benefit people, planet, and profits.