Assume that you recently got a job as an investment analyst and your boss has developed the following set of questions you must answer to explain the U.S. financial system to one of your firms clients.

1. Why is corporate finance important to all managers?
2. Describe the organizational forms a company might have as it evolves from a start-up to a major corporation. List the advantages and disadvantages of each form.
3. How do corporations go public and continue to grow? What are agency problems? What is corporate governance?
4. What should be the primary objective of managers?
5. Do firms have any responsibilities to society at large?
6. Is stock price maximization good or bad for society?
7. Should firms behave ethically?