1. Multiple Choice: What is the primary goal of financial management within a firm? a) Maximizing shareholder wealth b) Minimizing risk c) Maximizing profits d) Maintaining steady growth Correct Answer: a) Maximizing shareholder wealth Rationale: The primary goal is to maximize the value of the firm for its owners, the shareholders, by managing the firm's financial resources effectively. 2. True/False: The Net Present Value (NPV) method of project evaluation always provides the same ranking of projects as the Internal Rate of Return (IRR) method. Answer: False Rationale: NPV and IRR can provide different project rankings, particularly when dealing with non-conventional cash flows or mutually exclusive projects.