(a) What should be the ultimate objective of a corporate management team in terms of how it runs its business? Why? Can you cite an incorrect objective and explain how it might serve the firm poorly over the long-term?
(b) Quickly outline the two main areas of finance as an academic discipline: corporate finance (also known as ‘financial management’), and asset pricing (also known as ‘investments’).
(c) Briefly describe the most important legal and financial features of a ‘corporation’ that distinguish it from other forms of business organizations.
(d) Discuss the main differences between stocks and bonds.