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Financial Management

Module 1

AN OVERVIEW TO FINANCIAL MANAGEMENT


Instruction: Submit your answers in PDF or Word file. God bless!
Activity 1
1. What is meant by goal maximization of shareholders’ wealth?
2. What is the relationship among economics, finance and accounting?
3. Suppose you are relatively wealthy and are looking for a potential investment. Would you be
more interested in investing in a sole proprietorship or in a partnership or in a corporation?
Why?
4. Is maximizing shareholder value inconsistent with being socially responsible? Explain.

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