Question: Volkswagen has been in the news because of their efforts to cheat on emissions. Discuss this with emphasis on their goal of being the no 1 auto manufacturer in the world.Is it advisable for a firm to be the number 1 in sales?What is a better objective from a finance or economic point of view?

Requirement: Answer in seven to eight sentences and use as many of basic ideas from Chapter 1 topics (below) to answer the questions above.

This chapter introduced you to some of the basic ideas in corporate finance:

1. Corporate finance has three main areas of concern:
2. Capital budgeting: What long-term investments should the firm take?
3. Capital structure: Where will the firm get the long-term financing to pay for its investments? In other words, what mixture of debt and equity should the firm use to fund operations?
4. Working capital management: How should the firm manage its everyday financial activities?
5. The goal of financial management in a for-profit business is to make decisions that maximize the value of the stock or, more generally, the market value of the equity. We also discuss SOX and ethical issues.
6. The corporate form of organization is superior to other forms when it comes to raising money and transferring ownership interests, but it has the significant disadvantage of double taxation.
7. There is the possibility of conflicts between stockholders and management in a large corporation. We called these conflictsagency problemsand discussed how they might be controlled and reduced.
8. The advantages of the corporate form are enhanced by the existence of financial markets. Financial markets function as both primary and secondary markets for corporate securities and can be organized as either dealer or auction markets.
9. Of the topics we've discussed thus far, the most important is the goal of financial management: maximizing the value of the stock. Throughout the text, we will be analyzing many different financial decisions, but we will always ask the same question: How does the decision under consideration affect the value of the stock?