1) Maximization of shareholder wealth is a concept in whichA. profits are maximi

1) Maximization of shareholder wealth is a concept in whichA. profits are maximized on a quarterly basis.B. virtually all earnings are paid as dividends to common stockholders.C. increased earnings is of primary importance.D. optimally increasing the long-term value of the firm is emphasized.2) What is the primary goal of financial managementA. Maximizing cash flowB. Maximizing shareholder wealthC. Increased earningsD. Minimizing risk of the firm3) One of the major disadvantages of a sole proprietorship isA. the simplicity of decision making.B. low organizational costs.C. that there is unlimited liability to the owner.D. low operating costs.4) The statement of cash flows does NOT include which of the following sectionsA. cash flows from sales activitiesB. cash flows from investing activitiesC. cash flows from operating activitiesD. cash flows from financing activities