The overall goal of capital budgeting projects should be to:

decrease the firm's reliance on debt.

increase the firm's sales.

increase the firm's outstanding shares of stock.

When a corporation fails, the maximum that can be lost by an individual shareholder is:

the amount of their initial investment.

the amount of their share of the profits.

their proportionate share required to pay the corporation's debts.

the amount of their personal wealth.

increase the wealth of the firm's shareholders.

When the management of a business is conducted by individuals other than the owners, the business is most likely to be a:

corporation.

sole proprietorship.

partnership.

general partner.

When managers' compensation plans are tied in a meaningful manner to the value of the firm, agency problems:

can be reduced.

will be created.

are shifted to other stakeholders.

are eliminated entirely from the firm.