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Question 10 (1 point)

After a detailed assessment, the CEO of a publicly listed company has decided to undertake an investment is believed will not lead to an increase in shareholder wealth. However, it will increase overall profit and will result in the manager receiving additional remuneration. You would view this situation as:

Question 10 options:

	an agency conflict or problem.
	Acting in shareholders best interest.
	principal and owner resolution.
	None of the above

Question 11 (1 point)

The role of financial markets is to:

Question 11 options:

	ensure that the transfer of funds flow efficiently from savers to users of these funds.
	Ensure that both bond and share prices are maximised
	Ensure the maximisation of shareholder wealth
	Keep corporate borrowing costs to a minimum

Question 12 (1 point)

Why do investors prefer receiving cash sooner than later, according to finance theory?

Question 12 options:

	Because it can be reinvested sooner and earns additional return.
	Investors are indifferent as to the timing of future cash flows.
	Because investors value cash flows more greatly when they are received sooner rather than later.
	Both A and C

Question 13 (1 point)

When managers are making financial decisions they are primarily concerned with making decisions that should:

Question 13 options:

	maximise shareholder wealth.
	maximise the market value of the firm's ordinary shares.
	maximise share price
	accomplish all the above.

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