Which factor is not considered when determining a form of business organization?

a. Who owns the firm. b. The owners' risks. c. The tax ramifications. d. The physical location of the business.

What should a firm's primary objective be, given that it might actually be the most beneficial for society in the long run?

a. Minimizing layoffs. b. Maximizing market share. c. Minimizing costs. d. Maximizing shareholder value.

What is the definition of the term agency problem?

a. The difficulties that arise in professional baseball when players become free agents. b. The difficulties that arise when a principle hires an agency to represent their company. c. The difficulties that arise when a principle hires an agent and cannot fully monitor the agent's actions. d. When a principle hires an agent and must monitor every move they make, because they have found the agent to be unethical.