1.1 Which one is WRONG? A Asset Pricing is from Managers' perspective (B Asset Pricing includes topics such as portfolio management and stock pricing C Corporate Finance deals with decisions managers make D Asset Pricing includes topics such as stock and bond pricing and investors' decision making process 1 Point Question 2 XT 1.2 Which one is WRONG? au A Corporate finance in general answers 'what projects are beneficial to the firm and how the firm should get the money to do them A . Capital Budgeting answers portfolio management and stock pricing questions Capital Structure answers 'How the firm should get the money to invest or What source of money (debt, equity, ...) should be used D Corporate Finance answers Capital Budgeting and Capital Structure questions. 1.4 Which one is WRONG? Sole Proprietorship is easy to start AND has Limited Liability B Corporations have unlimited life and limited liability Corporations have the DISADVANTAGE of double taxation D Sole Proprietorship doesn't have double taxation 1 Point Question 4 1.5 in the context of Agency conflict, which one is WRONG? Shareholders are considered 'Principals Managers are considered Agents' Agency problem is the conflict of interest between Managers and Shareholders D Shareholders are ultimately in charge of the corporation E Managers always do what is best for shareholders