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A conflict of interest between the stockholders and management of a firm is called: A. Stockholders' liability B. Corporate breakdown C. The agency problem

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A conflict of interest between the stockholders and management of a firm is called: A. Stockholders' liability B. Corporate breakdown C. The agency problem D. Corporate activism E. Legal liability Qu. #2. When considering a capital budgeting Project the financial manager should consider: A. Only the size of the project B. Only the timing of the project cash flows C. Only the risk of the project cash flows D. Only the size and timing of the project cash flows E. The size, timing, and risk of the project cash flows. Qu. # 3. Dealer Markets: A. Are reserved strictly for trading debt securities B. Only exist outside of the United States C. Are called over-the-counter markets D. Include the American Exchange and the Pacific stock Exchange E. List only the securities of the largest firms Qu. #4. Which form of business structure faces the greatest agency problems? A. Sole proprietorship B. General partnership C. Limited partnership D. Corporation

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