1-20 Circle the correct answer (4.1 points each) 21 complete the missing cells (18 points with limited partial credit) 1) The primary goal of a publicly owned corporation is to A) maximize dividends per share B) maximize shareholder wealth C) maximize earnings per share after taxes D) minimize shareholder risk 2) Shareholder wealth maximization means A) maximizing earnings per share. B) maximizing dividends per share. C) maximizing the price of existing common stock. D) maximizing stockholders equity 3) The five basic principles of finance include all of the following EXCEPT A) Cash flow is what matters. B) Money has a time value. C) Risk requires a reward. D) Incremental profits determine value. 4) Capital budgeting is concerned with A) whether a company's assets should be financed with debt or equity. B) managing a firm's cash budgeting procedures. C) what long-term investments a firm should undertake. D) planning sales of a corporation's equity capital 5) S-type corporations have all of the following advantages EXCEPT A) they are taxed as partnerships. B) the owners have limited liability C) distributions are taxed twice, similar to corporate dividend payments D) all owners must be people, no corporations 6) Which of the following is an advantage of the sole proprietorship? A) limited liability for its owners B) double taxation for its owners C) no significant legal requirements for starting the business D) easily transferred ownership 7) The true owners of the corporation are the A) holders of debt issues of the firm. B) preferred stockholders. C) board of directors of the firm. D) common stockholders