a. If the goal of a firm is to maximize the shareholders’ wealth, does it mean profit is not important at all? Explain your answer.

b. What are the advantages and disadvantages of the three principal forms of business organization?

c. Briefly explain the term "agency costs" as related to a corporation. How can agency problem be minimized when a company uses debt?

d. In pursuing the goal of a firm, why is corporate governance important?

Answer rating: 100% (QA)

a Maximizing the shareholders wealth doesnt mean the profit is not important for the company These two topics Maximizing Profit and Maximizing Shareholders Wealth are different in nature and character... View the full answer