,
,
, Test Bank for
Finance Applications and Theory 6e Cornett
Chapter 1-20 Answers are at the end of Each chapter
Chapter 1
Student name:__________
1) Which statements(s) is/are true for successful application of financial theories?
A) The economy will be more productive.
B) Individual’s wealth will grow.
C) The economy will be more productive and individual's wealth will grow.
D) None of these choices are correct.
2) Not all cash a company generates will be returned to the investors. Which of the following
will NOT reduce the amount of capital returned to the investors?
A) retained earnings
B) taxes
C) dividends
3) This subarea of finance involves methods and techniques to make appropriate decisions
about what kinds of securities to own, which firms' securities to buy, and how to be paid back
in the form that the investor wishes.
A) real markets
B) investments
C) financial management
4) This subarea of finance looks at firm decisions in acquiring and utilizing cash received from
investors or from retained earnings.
A) investments
B) financial management
C) financial institutions and markets
,
, Test Bank for
Finance Applications and Theory 6e Cornett
Chapter 1-20 Answers are at the end of Each chapter
Chapter 1
Student name:__________
1) Which statements(s) is/are true for successful application of financial theories?
A) The economy will be more productive.
B) Individual’s wealth will grow.
C) The economy will be more productive and individual's wealth will grow.
D) None of these choices are correct.
2) Not all cash a company generates will be returned to the investors. Which of the following
will NOT reduce the amount of capital returned to the investors?
A) retained earnings
B) taxes
C) dividends
3) This subarea of finance involves methods and techniques to make appropriate decisions
about what kinds of securities to own, which firms' securities to buy, and how to be paid back
in the form that the investor wishes.
A) real markets
B) investments
C) financial management
4) This subarea of finance looks at firm decisions in acquiring and utilizing cash received from
investors or from retained earnings.
A) investments
B) financial management
C) financial institutions and markets
