1798443�432232526157305896895 n

I The follow ing are adsantages of separation of ownership and management of corporations cxccpt:

A. Enterprise can cxist forever

B Transfer of ownership docs not affect the operations of the firm C Hire professional managers D. lncur agency costs

2. The financial goal of an enterprise in Capital-bascd model is to:

A.    Maximize profits

B.    Maximizc salcs

C.    Maximi/.e the valuc of the firm for the sharcholders

W 3.

D.    Maximizc managers' benefit

Mark wrong answer. The goal of an enterprise in family-bascd model:

A. Is focuscd on long-term actions B Is focuscd on total risk approach

C.    Uscs two-tire govemment system

D.    Usually assumes a combination of management and ownership.

4.

Good go\emment practiccs assumes:

A.    f;qujiablc treatment of shareholders

B.    Disclosure and transparcncy ( Corporatc Social Responsibility actions D. Ali of above are true.

5. I hc cost ol an asset that is relevant to an inveslment decision even when there are no actual cash fiows is called a (an):

A.    Sunk cost

B.    Opportunity cost

C.    Incidcntal cost

D.    Nonc of the abovc