Multiple choice

1) Which of the following best describes the goal of the firm? 

A. The maximization of the total market value of the firm's common stock] 

B. Profit maximization 

C. Risk minimization 

D. None of the above 

2) Which of the following categories of owners have limited liability? 

A. General partners 

B. Sole proprietors 

C. Shareholders of a corporation 

D. Both a and b 

3) __________ is a method of offering securities to a limited number of investors. 

A. Public offering 

B. Syndicated underwriting 

C. Initial public offering 

D. Private placement

4) Which of the following does NOT involve underwriting by an investment banker? 

A. Syndicated purchases 

B. Commission basis purchases 

C. Competitive bid purchases 

D. Negotiated purchases