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answer this please 1. Which of the following statements best represents what finance is about? The study of how people and businesses make investment decisions

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1. Which of the following statements best represents what finance is about? The study of how people and businesses make investment decisions and how to finance hose decisions. Maximizing profits How political, social, and cconomic forces affect comporations Reducing risk 2. From a financial point of view, a company that decides to develop new product is making an investment decision. a cash flow decision. a capital structure decision. a financing decision. 3. Which of the following best describes the goal of the firm? Risk minimization The muximization of the total market value of the firm's common stock Profit maximization None of the above 4. What does the agency problem refer to? The conflict that exists between stockbrokers and iavestors. The problem that results from potential conflicts of interest between the manager of a business and the stockholders. The problem associated with financial managers and Intemal Revenue agents. The conflict that exists between the board of directors and the employees of the firm. 5. The principal participants in in the financial markets are borrowers, savers, financial institutions. businesses, banks, government. dealer5, brokers, regulators. mutual funds, hedge funds, investment bankers 6. The area of finance that deals with long-term investment decisions is known as capital structure. capital budgeting. working capital management. financial strategy. 7. Al Amal will only open a pharmacy if the decision to open its polyclinics is providing them with a positive net present value. When analyzing the proposed project, the phamacy and the polyclinies, should be treated as what type of project? complementary mutually exclusive independent pre-requisite Page 1 of 5 the extra money the firm pays from taking on mere projects. the additional moncy the firm receives from taking on a new pryect. the prior moncy the firm spent from taking on a sew project. under principles. underlying valut stand-alone strivage value merermental coi incrementat coin

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