1) The goal of the firm should beA. maximization of profitsB. maximization of sh

1) The goal of the firm should beA. maximization of profitsB. maximization of shareholderwealthC. maximization of consumer satisfactionD. maximization of sales2) An example of a primary market transactionisA. a new issue of common stock byAT&TB. a sale of some outstanding commonstock of AT&TC. AT&T repurchasing its own stock from a stockholderD. one stockholder selling shares of common stock to anotherindividual3) According to the agency problem _________ represent theprincipals of a corporation.A.shareholdersB. managersC. employeesD. suppliers4) Which of the following is a principle of basic financialmanagement?A. Risk/returntradeoffB. DerivativesC. Stock warrantsD. Profit is king5) Another name for the acid test ratio istheA. current ratioB. quick ratioC. inventoryturnover ratioD. average collection period