Question 1: If the goal of a firm is to maximize the shareholders' wealth, does it mean profit is not important at all? Explain your answer.
Question 2: What are the advantages and disadvantages of the three principal forms of business organization?
Question 3: Briefly explain the term "agency costs" as related to a corporation. How can agency problem be minimized when a company uses debt?
Question 4: In pursuing the goal of a firm, why is corporate governance important?