Question 1: Which of the following statements is true regarding the goal of financial management?
A. A U.S. company considering international operations will have a different goal than a company that only conducts operations in the U.S.
B. The firm's structure (i.e. corporation, sole proprietorship, partnership) is not relevant to the goal of financial management.
C. A way of aligning management goals to shareholder's interest is to tie managerial compensation to the market value of the firm's stock.
D. None of the above are true.
Question 2: Market values reflect which of the following:
A. The amount someone is willing to pay today for an asset.
B. The value of the asset based on generally-accepted accounting principles.
C. The asset's historical cost.
D. A and B only.