Question: How does finance differ from economics? Explain the contractual differences between corporations, partnerships, and sole proprietorships. What is the role of the stockholders in the

  1. How does finance differ from economics?

  2. Explain the contractual differences between corporations, partnerships, and sole proprietorships.

  3. What is the role of the stockholders in the organization of a corporation?

  4. List and discuss three important characteristics of the corporation.

  5. Who owns a corporation, and what is its goal?

  6. What is an agency relationship?

  7. Discuss the implication of positive marginal utility to the financial manager.

  8. Discuss the implication of diminishing marginal utility to the financial manager.

  9. Discuss the implication of diminishing marginal return to the financial manager.

  10. Discuss the implication of the law of conservation of value to the financial manager.

  11. Explain why, in well-functioning markets, a vegetarian might prefer $100 worth of beef to $90 worth of vegetables.

  12. To what does the concept of separation refer?

  13. Why is a safe dollar worth more than a risky dollar?

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