Online Summer 2020 TAP 1 (15%) Question 1: Short Answer Questions (30 points) provide a definition of Agency Problem: (15 points) 2. Explain present value concept ( 15 points) Questions 2: List three advantages of Sole Proprietorship. (15 points) 1. 2. 3. Question 3: Multiple Choice Questions (10 points) Answer the following multiple questions by choosing one correct answer. The primary goal of one business is: The manager's compensation Maximize profit/ wealth of owners Both a and b 4. None of the above. A legal entity created by a state, and it is separate and distinct from its owners (.e. stockholders) and managers is known as: Sole proprietorship b) Corporations Partnership None of the above