FIN 370 Final Exam

1) In terms of organizational costs, which of the following sequences is correct, moving from lowest to highest cost?

a. Corporation, limited partnership, general partnership, sole proprietorship

b. Sole proprietorship, general partnership, corporation, limited partnership

c. General partnership, sole proprietorship, limited partnership, corporation

d. Sole proprietorship, general partnership, limited partnership, corporation

2) Which of the following best describes the goal of the firm?

a. The maximization of the total market value of the firm's common stock]

b. Profit maximization

c. Risk minimization

d. None of the above

3) The true owners of the corporation are the:

a. board of directors of the firm.

b. common stockholders.

c. holders of debt issues of the...