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CHAPTER 1:
1) Answer all four (4) Concept Questions on page 10.
What is an “LLC�
What is the goal of an LLC?
2) What is “Sarbox�
What is one of the requirements of Sarbox?
What does it mean to “go dark�
What is an unintended, ironic consequence of Sarbox?
3) What is the “Agency Problem�
Does it exist in all of the forms of business organizations? Why or why not?
4) What is a Stakeholder?
Name four possible stakeholders.
5) What are some of the things that can be done with the Cash Flow that comes from a
company?
6) What is the difference between a Primary Market and a Secondary Market?