-Define the terms finance and financial management. What are the major sub-areas of finance?
-Identify and define the three basic forms of business ownership. Describe the advantages and disadvantages of each.
-Define the terms agency relationship and agency problem. Explain three different approaches to minimizing the agency problem.
-Explain why ethical behavior is so important in the field of finance.
-Explain the concept of shareholder wealth maximization. Is there a conflict between the goal of shareholder wealth maximization and the financial manager’s need to act in an ethical manner? Why or why not?
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