1. Which of the following statements best represents what finance is about? a. H

1. Which of the following statements best represents what finance is about? a. How political social and economic forces affect corporationsb. Maximizing profitsc. Creation and maintenance of economic wealthd. Reducing risk2. The goal of the firm should be: a. Maximization of profits.b. Maximization of shareholder wealth.c. Maximization of consumer satisfaction.d. Maximization of sales.3. Consider the timing of the profits of the following certain investment projects: Profit L SYear 1 $0 $3000Year 2 $3000 $0a. Project S is preferred to Project L.b. Project L is preferred to Project S.c. Projects S and L are equally desirable.d. A goal of profit maximization would favor Project S only.4. Which of the following best describes the goal of the firm? a. The maximization of the total market value of the firm s common stockb. Profit maximizationc. Risk minimizationd. None of the above