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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?

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