1) Write down the structure of a Balance Sheet and an Income Statement 2) In a Corporation, the Treasurer usually reports to the: a) Chief Financial Officer b) Controller c) Chief Executive Officer (CEO) d) VP of Financial Planning 3) The primary factor that separates the corporate form of business from partnerships and sole proprietorships is: a) Corporations are larger than partnerships and sole proprietorships b) The owners of corporations get to keep all the company's profits c) The owners of Corporations run the business and have unlimited liability d) Corporations are "Legal persons" separate and distinct from their owners 4) The primary goal of a publicly-owned firm interested in serving its stockholders should be to: a) Maximize expected total corporate profit b) Maximize expected EPS c) Minimize the chances of losses d) Maximize the stock price per share e) Maximize expected net income 5) Which of the following is the best measure of the wealth of a firm's stockholders? a) The firm's net income during the past year b) Expected Earnings per share during the coming year c) Book value or Net Worth as recorded on the balance sheet? d) The price of the firm's stock on the open market

6) Consider the following firms: Net Income this Year Stock price at beginning of year Stock price at end of year Firm A $ 10,000,000 $ 20 $ 10 Firm B $ 8,000,000 $ 10 $ 20 a) The manager of firm A is doing a better job than B b) The manager of firm B is doing a better job than A c) Neither manager is doing a good job d) Both managers are doing a good job 7) In Corporations, the goals of management and the goals of the stockholders are a) Always the same b) Always different c) Might be different d) Must be different 8) What are two ways that stockholders have to take back the control of the Corporation in case they are not happy with management? Please describe each. 9) What are Auction Markets? Which is the largest in the United States? 10) What was the purpose of the SARBANES OXLEY ACT 2002? What have been the implications for the stock market in the US?