Question 1 Goal of financial management in a for profit corporation is to: O Make decisions that increase the market value of the equity. O Make decisions that maximizes the dividends paid to shareholders O Make decisions that maximizes earnings for the current period O Make decisions that increases the book value of equity. O Make decisions that increase the firm's total equity. Question 2 Corporate form of organization has the following advantages over other forms of organization, except: O Easier to raise large amount of capital O Avoiding double taxation O Limited liability O Separation of ownership and management O Ease of transferring of ownership The Sarbanes-Oxley Act in 2002 aims to improve the accuracy and reliability of corporate disclosures. Which event(s) from the 1990s was the primary reason that prompted the enactment of this Act? O stock market volatility O Excessive use of tax loopholes O Increased foreign investment in U.S. stock markets O Corporate accounting and financial fraud O Excessive executive compensation