Foundations of Financial Management, 18e (Block)
N N N N N
Chapter 1 The Goals and Activities of Financial Management
N N N N N N N
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
N N N N N N N N N N N N N N
Answer: TRUE Diff N N
iculty: 1 EasyN N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
N N N N N N N N N N N N N
Answer: FALSE Dif N N
ficulty: 1 Easy N N
Topic: Financial management decisions N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
3) Financial capital is composed of long-
N N N N N
term plant and equipment, as well as other tangible investments.
N N N N N N N N N
Answer: FALSE Dif N N
ficulty: 1 Easy N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
4) Real capital is composed of long-term plant and equipment.
N N N N N N N N
1
Copyright © 2019 McGraw-Hill Education. All rights reserved. N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
,Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
,AACSB: Reflective Thinking Acces
N N N
sibility: Keyboard Navigation
NN N
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
N N N N N N N N N N N N N N
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
N N N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking
N N
Accessibility: Keyboard Navigation N
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
N N N N N N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking
N N
Accessibility: Keyboard Navigation N
7) Recently, the emphasis of financial management has been on the relationship between risk and
N N N N N N N N N N N N N N
return.
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
N N N N N N N N N N N N N N N
AACSB: Analytical Thinking Acces
N N N
sibility: Keyboard Navigation
NN N
8) The first Nobel Prizes given to finance professors were for their contributions to capital
N N N N N N N N N N N N N N
structure theory and portfolio theories of risk and return.
N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
3
Copyright © 2019 McGraw-Hill Education. All rights reserved. N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
, Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
N N N N N
Chapter 1 The Goals and Activities of Financial Management
N N N N N N N
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
N N N N N N N N N N N N N N
Answer: TRUE Diff N N
iculty: 1 EasyN N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
N N N N N N N N N N N N N
Answer: FALSE Dif N N
ficulty: 1 Easy N N
Topic: Financial management decisions N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
3) Financial capital is composed of long-
N N N N N
term plant and equipment, as well as other tangible investments.
N N N N N N N N N
Answer: FALSE Dif N N
ficulty: 1 Easy N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01- N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking N N
Accessibility: Keyboard Navigation N
4) Real capital is composed of long-term plant and equipment.
N N N N N N N N
1
Copyright © 2019 McGraw-Hill Education. All rights reserved. N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
,Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
,AACSB: Reflective Thinking Acces
N N N
sibility: Keyboard Navigation
NN N
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
N N N N N N N N N N N N N N
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
N N N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking
N N
Accessibility: Keyboard Navigation N
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
N N N N N N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's:
Remember AACSB N
: Reflective Thinking
N N
Accessibility: Keyboard Navigation N
7) Recently, the emphasis of financial management has been on the relationship between risk and
N N N N N N N N N N N N N N
return.
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
N N N N N N N N N N N N N N N
AACSB: Analytical Thinking Acces
N N N
sibility: Keyboard Navigation
NN N
8) The first Nobel Prizes given to finance professors were for their contributions to capital
N N N N N N N N N N N N N N
structure theory and portfolio theories of risk and return.
N N N N N N N N
Answer: TRUE Diff
N N
iculty: 1 Easy
N N
3
Copyright © 2019 McGraw-Hill Education. All rights reserved. N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
, Topic: Introduction to corporate finance
N N N N N
Learning Objective: 01-
N
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
N N N N N N N N N N N N N N N
eas.
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
N N N N N N N
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
N N N N N N N N N N N
