QUESTION 1 12 points Save Answer Please answer the following questions (each question is worth 2 points for a total of 12 points) 1. What is the appropriate goal for a firm and why? 2 What does the nisk-retum trade-off mean? 3. What is the cause of the agency problem, and how do we try to solve it? 4. Define (1) sole proprietorship, (2) partnership, and (3) corporation 5. If the Red Company eamed $500,000 in net income, spent $100,000 in cost of goods sold, had $55,000 of general and administrative expenses $45,000 in interest expense, $30,000 in depreciation expenses, and $50,000 in taxes, what was the company's sales revenue? (show calculation steps) 6. Draft an income statement and a common-sized income statement using the following information Sales $525,000 Cost of goods sold 200,000 General and administrative expenses 62,000 Depreciation expenses 8,000 Interest expense 12,000 Income taxes 97,200