Questions 6-1 What are the three principal forms of business organization? What are the advantages and disadvantages of each? 6-2 What does it mean to maximize the value of a corporation? 6-3 Should stockholder wealth maximization be thought of as a long-term or a short-term goal? For example, if one action would probably increase the firm's stock price from a current level of $20 to $25 in six months and then to $30 in five years, but another action would probably keep the stock at $20 for several years, but then increase it to $40 in five years, which action would be better? Can you think of some specific corporate actions that might have these general tendencies? 6-4 Would the management of a firm in an oligopolistic industry or in a competitive industry be more likely to engage in socially conscious" practices? Explain your reasoning. 6-5 What is the difference between stock price maximization and profit maximiza- tion? What conditions might promote profit maximization but not lead to stock price maximization? #6 where a large publicly and corporation, would you mele de maxime achilderwere or your own personal inte What are that stokholders take to cute that man mentres and how at holdes What are the latton 4-7 The rest of Scontocor Corporation made this statement in the consacrated 'prilis to increase the value of the hadequy one time later in the report, the following on wwe made # The comply contributed 51.5 mln to the symphony Orchestra is som Traduate 1. United is spending 300 million to open a new plant in Mexico. No revenue will be produard by the plans for four years to coming will be depressed daring this period versus what they would have been had the company w the plant The company increasing rative of debt. Assets were format fulanced with promet and 65 percent equity beforth, the fina will be so se The company was a great deal of electricity in itanufacturing operation and le protest of this power itself toite plans to utilize mural rather than colte produse de tricity in the future. The company has been paying at half of it camningsadvice and inst the other hall. Henceforth it will pay out only 10 percent dividende Docuw how hard stockholders, customers, and labor force would react to cach of the actions and describe how each actionnateated's tockice 6-4 Why doUS.corporation build manufacturing plants alread when they could build them at home 5-9 Compared to the ownership structure of S. mm, which are open compte what are we advantages of the ownership in the foreign for many which are closed companies? Can you think of any disadvantage 6-10 In peneral terms low is value measured? What are the three factors the mine value? How does each factor affect value