Test Bank for Foundations of Financial
Management by Block & Hirt | Complete
Edition
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Test Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
Foundations of Financial Management, 17e (Block)
Chapter 1 The Goals and Activities of Financial Management
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
j j j j j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
2) Inflation is assumed to be a temporaryproblem that does not affect financial decisions.
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Answer: FALSE j j
Difficulty: 1 Easy j j
Topic: Financialmanagement decisions j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
3) Financial capital is composed of long-termplant and equipment, as wellas other tangible
j j j j j j j j j j j j j j
investments.
Answer: FALSE j j
Difficulty: 1 Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
4) Realcapital is composed of long-termplant and equipment.
j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,AACSB: Reflective Thinking j j j
Accessibility: Keyboard j j j
Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation ofcapital,
j j j j j j j j j j j j j j
maintenance of liquidity, the reorganizationof financiallytroubled corporations, and bankruptcy.
j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
6) Inthe mid 1950s, finance began to change to a more analytical, decision-oriented approach.
j j j j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
7) Recently, the emphasis of financial management has been on the relationship between risk and
j j j j j j j j j j j j j j
return.
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
j j j j j j j j j j j j
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
j j j j j j j j j j j j j j j j j j j
Bloom's: Understand j
AACSB: Analytical Thinking j j j
Accessibility: Keyboard j j j
Navigation
8) The first NobelPrizes given to finance professors were for their contributions to capital
j j j j j j j j j j j j j j
structure theory and portfolio theories of risk and return.
j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, a number of other areas.
j j j j
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Management by Block & Hirt | Complete
Edition
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Test Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
Foundations of Financial Management, 17e (Block)
Chapter 1 The Goals and Activities of Financial Management
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
j j j j j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
2) Inflation is assumed to be a temporaryproblem that does not affect financial decisions.
j j j j j j j j j j j j j
Answer: FALSE j j
Difficulty: 1 Easy j j
Topic: Financialmanagement decisions j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
3) Financial capital is composed of long-termplant and equipment, as wellas other tangible
j j j j j j j j j j j j j j
investments.
Answer: FALSE j j
Difficulty: 1 Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
4) Realcapital is composed of long-termplant and equipment.
j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,AACSB: Reflective Thinking j j j
Accessibility: Keyboard j j j
Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation ofcapital,
j j j j j j j j j j j j j j
maintenance of liquidity, the reorganizationof financiallytroubled corporations, and bankruptcy.
j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
6) Inthe mid 1950s, finance began to change to a more analytical, decision-oriented approach.
j j j j j j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
a number of other areas.
j j j j
Bloom's: Remember j
AACSB: ReflectiveThinking j j
Accessibility: Keyboard Navigation j
7) Recently, the emphasis of financial management has been on the relationship between risk and
j j j j j j j j j j j j j j
return.
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
j j j j j j j j j j j j
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
j j j j j j j j j j j j j j j j j j j
Bloom's: Understand j
AACSB: Analytical Thinking j j j
Accessibility: Keyboard j j j
Navigation
8) The first NobelPrizes given to finance professors were for their contributions to capital
j j j j j j j j j j j j j j
structure theory and portfolio theories of risk and return.
j j j j j j j j
Answer: TRUE j j
Difficulty:1Easy j j
Topic: Introduction to corporate finance
j j j j j
Learning Objective: 01-01The field offinance integrates concepts fromeconomics, accounting, and
j j j j j j j j j j j j
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, a number of other areas.
j j j j
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
