Questions and problems
Foundations of Finance
- List the advantages and disadvantages of the following forms of business:
- Sole proprietorship
- List and briefly describe the advantages of a limited liability company
form of business relative to the corporate form of business.
- Explain the difference, if any, between accounting profit and economic profit.
- What is the goal of the firm and how does it relate to a company's profit?
- List and briefly describe three compensation devices that may be used to
provide incentives for managers to maximize owners' wealth.
- What is the role of Sarbanes-Oxley in corporate governance?