Comment on the following statement: Sooner or later, all successful private companies that are organized as proprietorships or partnerships must be-come corporations.
Answer to relevant QuestionsWhat are agency costs? Why do these tend to increase in severity as a corporation grows larger? Can there be a difference between profit maximization and shareholder wealth maximization? If so, what could cause this difference? Which of the two should be the goal of the firm and its management? Which statements are of greatest interest to creditors, and which would be of greatest interest to stockholders? Use the following information to answer the questions that follow. a. Use the DuPont system to compare the two heavy metal companies shown above (HMM and MS) during 2009. Which of the two has a higher return on common ...How would (a) an increase in the discount rate or (b) a decrease in the time period until the cash flow is received affect the present value? Why?
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