May I ask for the a short or concise explanation to each question for a better understanding. Thank you for your help! (Beneath the questions are choices for each question)

1. Decisions made by managers may be in conflict with the best interests of the shareholders

2. Competitors may take a controlling interest in the company if the current management is unable to run the company effectively.

3. This is also known as value maximization or net worth maximization.

4. The financial manager is concerned with the financed of the business

5. Decisions related to trade off liquidity and solvency

6. Its formulation should lead to profitability, keeping while the image of the organization intact.

7. Current funds have to be invested in long-term activities in anticipation of unexpected flow of future benefits spread over a long period of time.

8. They give debt financing a definite cost advantage over stock

9. It allows good and bad events to cancel each other out, reducing risk.

10. Each individual has his own set of values, which forms the basis for his personal judgements about what is the right thing to do.

11. The difference between the cash flows if the project is taken on versus what they will be if the project is not taken on.

12. It is characterized by a large number of profit driven individuals who act independently. In addition, new information regarding securities arrives in the market in a random manner.

13. The corporation responds to pressure from different stakeholder groups.

14. It is an extension of responsibility to embrace service to the public interest in such matters as environmental protection, employee safety, civil rights, and community involvement.

15. This should be constructed to also align managers' interest with those of stockholders as much as possible.

16. Cash received by the firm can be reinvested but nor accrued profits.

17. The greater the risk associated with any financial decision, the greater the return expected from it.

18. Additional competition and added capacity can result in profits being driven down to the required rate of return.

19. When new information regarding securities arrives in the market, investors adjust to the new information immediately and buy and sell the security until they feel the price correctly reflects the new information.

20. A peso received at a later time is worth less in buying power.

Choices:

A. Efficient market

B. Production management

C. Financing decision

D. Tax laws

E. Liquidity decisions

F. Investment decisions

G. Social responsiveness

H. Risk return trade off

I. Capital budgeting

J. Diversification

K. Corporate social responsibility

L. Agency problem

M. Ethical dilemma

N. Cost control

O. Threat of takeovers

P. Managerial compensations

Q. The curse of competitive markets

R. Pricing policies

S. Time value of money

T. Wealth maximization

U. Cash flows not profits is king

V. Incremental cash flows

W. Efficient capital markets