Week 1 Concept Quiz

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Q Question 1 5 / 5 pts Your answers should reflect your own words. However, if you use an external source, you must provide a citation for that material you have used. In a short paragraph, discuss what the goal of the firm should be. Question 2 5 / 5 pts Your answers should reflect your own words. However, if you use an external source, you must provide a citation for that material you have used. Briefly discuss the Agency problem. Question 3 5 / 5 pts Corporate Governance is the set of laws, policies, incentives, and monitors designed to handle the issues arising from separation of ownership and control.

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1.So I looked at this online and almost all the results showed profit maximization Cornett et al. (2021), addresses this question from two perspectives. First, the authors infer that the firm's goal should be to increase the value of the firm to maximize shareholders' wealth. Alternatively, they infer that shareholders may expect the firm to maximize their wealth and participate in activities that make the firm environmentally friendly and socially responsible. Reference Cornett, M. M., Adair, T. A., & Nofsinger, J. (2021). M: Finance, (5th ed.). New York: Mc Graw Hill

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