2. Pick one of the "subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations. What are the primary advantages and disadvantages to becoming a corporation. Explain how "Hybrid" Organizations offer an alternative to corporations. What are the advantages and disadvantages of become a hybrid as opposed to a regular corporation? (8 pts.) 5. What are the primary goals of the corporation? What are the primary types decisions managers make in regard to achieving this goal? Please be specific. Exactly how would we know when managers are achieving the desired goal? That is, exactly how would we measure their perfomance? Also, why aren't cost minimization and market-share maximization necessary good goals? (8 pts.) 6. Explain the Agency Problem and how it can interfere with the primary goal identified in question 5 above. Please be complete. What can corporations do to minimize this problem? (6 pts.) 7. What are usually the highest, and second-highest level financial managers in a typical corporation? What are the responsibilities of the Treasurer? (5 pts.) 8. Describe two areas or situations where finance might be important in your personal life. (4 pts.) 2. Pick one of the "subareas' of finance and provide an of what is involved in that subarea. (3 pts.) 3. Describe the role that ethics should play in finance. How do "fiduciary relationships affect this? (3 pts.) 4. Why do companies usually go through a "life-cycle" where they start out as sole proprietorships and then eventually become corporations. What are the primary advantages and disadvantages to becoming a corporation. Explain how "Hybrid" Organizations offer an alternative to corporations. What are the advantages and disadvantages of become a hybrid as opposed to a regular corporation? (8 pts.) 5. What are the primary goals of the corporation? What are the primary types decisions managers make in regard to achieving this goal? Please be specific. Exactly how would we know when managers are achieving the desired goal? That is, exactly how would we measure their perfomance? Also, why aren't cost minimization and market-share maximization necessary good goals? (8 pts.) 6. Explain the Agency Problem and how it can interfere with the primary goal identified in question 5 above. Please be complete. What can corporations do to minimize this problem? (6 pts.) 7. What are usually the highest, and second-highest level financial managers in a typical corporation? What are the responsibilities of the Treasurer? (5 pts.) 8. Describe two areas or situations where finance might be important in your personal life. (4 pts.)