1. The goal of financial management is to:
A. maximize net income.
B. maximize shareholder wealth.
C. maximize working capital.
D. minimize costs.
2. Financial Leverage refers to:
A. the liquidity of a firm’s assets.
B. the use of debt in a firm’s capital structure.
C. the amount of agency costs incurred by a firm.
D. how much a firm has contributed to political campaigns.