DESCRIPTIVE QUESTIONS
  1. Explain the different types of financial decisions that form the subject-matter of corporate financial management.
  2. In what way do the microeconomic and macroeconomic factors influence corporate financial decisions?
  3. “The objective of corporate financial decisions is to maximise profits”. Comment on this statement.
  4. “It is not profit maximisation but the maximisation of corporate wealth that is the ultimate objective of corporate financial decisions”. Discuss.
  5. What do you mean by the agency problem? Does it come in the way of corporate wealth maximisation? If so, how can it be controlled?

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