FIN 370 Final Exam

1) 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

2) The true owners of the corporation are the:

A. preferred stockholders.

B. common stockholders.

C. holders of debt issues of the firm.

D. board of directors of the firm.

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

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

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

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

D. Corporation, limited...