This Mini Case is available in MyFinanceLab
Assume you are an assistant financial analyst at an international corporation, Occulocorp, and you are interviewed by a radio broadcast journalist. You are asked to introduce and explain basic financial concepts to a local audience, for which you are given a set of questions.
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Please respond to the following questions:
a. What is one of the primary goals for a firm with domestic or international operations?
b. As a company grows, the separation of ownership and management will become a critical issue. What might be the reasons for this? Which theory is essential in this framework?
c. Why does finance play such an important role in business?
d. Are market prices generally right?
e. Why do ethics, ethical behavior, and trust play an important role in financial decisions?
f. Why is the time value of money important?
g. Why are multinational corporations increasing?