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1. The goal of the firm should be the maximization of profit. (True False) 2. The goal of profit maximization is equivalent to the goal of maximization of share value. (True/False) 3. One of the problems associated with profit maximization is that it ignores the timing of a project's return (True/False) 4. Although maximization of the market value of a firm's common stock is a valid objective of the firm, it is not without its drawbacks since the effects of financial structure decisions are not reflected in this term. (True/False) 5. For the risk-averse financial manager, the more risky a given course of action, the higher the expected return must be. (True/False) 6. Only a few financial decisions involve some sort of risk-return tradeoff. (True/False) 7. In a general partnership, all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm. (True/False) 8. The corporation is the best form of organization in terms of raising capital. (True/False) 9. There is no legal distinction made between the assets of the business and the personal assets of the owners in the limited partnership (True/False) 10. General partners have unrestricted transferability of ownership, while limited partners must have the consent of all partners to transfer their ownership (True/False) 11. Ultimate control in a corporation is vested in the board of directors. (True/False) 12. There are a significant number of legal requirements to follow when establishing a sole proprietorship True / False

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