BFIN
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BFIN 88
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BFIN MIDTERM 1 CHAPTER 2 EXAM WITH A 100% 
CORRECT ANSWERS 
The process of planning and managing a firm's long-term investments is called - 
Capital Budgeting 
Which of the following is an example of an indirect agency cost? - A lost opportunity 
Which of the following forms of business organization is subject to double taxation? - 
Corporation 
Control of a firm ultimately rests with - The Stockholders 
Which of the following should a financial manager take into account when considering 
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