The investment decision is the most important of the firm’s three major decisions, when it comes to:

___________ is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

A. Financial management

B. Profit maximization

C. Agency theory

D. Social responsibility

Having some overall goal in mind, financial management is concerned with:

A. Acquisition of assets

B. Financing of assets

C. Management of assets

D. All of them

Annual cash dividends divided by annual earnings; or alternatively, dividends per share divided by earning per share is termed as:

A. Earning per share ratio

B. Proposed dividend ratio

C. Dividend payout ratio

D. Expected dividend ratio

Profit maximization is the maximizing a firm’s Earning:

A. Before Tax

B. After Tax

C. Both A and B

D. None of Them

An individual authorized by another person, called the principle, to act on the latter’s on behalf is known as an/a:

A. Agent

B. Servant

C. Subordinate

D. Assistant