TEST BANK For Foundations of Financial Management, 18th Edition by Stanley Block, Geoffrey Hirt, Bartley Danielsen| Verified Chapter's 1 - 21 | Complete Newest Version

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Copyright © 2019 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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,Foundations of Financial Management, 18e (Block)
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Chapter 1 The Goals and Activities of Financial Management
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1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
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Answer: TRUE Diffi P P


culty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P


: Reflective Thinking P P


Accessibility: Keyboard Navigation P




2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
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Answer: FALSE Dif P P


ficulty: 1 Easy P P


Topic: Financial management decisions P P


Learning Objective: 01- P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P


: Reflective Thinking P P


Accessibility: Keyboard Navigation P




3) Financial capital is composed of long-
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term plant and equipment, as well as other tangible investments.
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Answer: FALSE Dif P P


ficulty: 1 Easy P P


Topic: Introduction to corporate finance
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Learning Objective: 01- P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P


: Reflective Thinking P P


Accessibility: Keyboard Navigation P




4) Real capital is composed of long-term plant and equipment.
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Answer: TRUE Diffi P P


2
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P


No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P

,culty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01-
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01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's: Remember




3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P

, AACSB: Reflective Thinking Acces
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sibility: Keyboard Navigation
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5) During the 1930s, financial practice revolved around such topics as the preservation of capital, m
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aintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
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Answer: TRUE Diffi P P


culty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P


: Reflective Thinking P P


Accessibility: Keyboard Navigation P




6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
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Answer: TRUE Diffi P P


culty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P


: Reflective Thinking P P


Accessibility: Keyboard Navigation P




7) Recently, the emphasis of financial management has been on the relationship between risk and re
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turn.

Answer: TRUE Diffi P P


culty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- P P


01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
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AACSB: Analytical Thinking Acces
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sibility: Keyboard Navigation
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8) The first Nobel Prizes given to finance professors were for their contributions to capital st
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ructure theory and portfolio theories of risk and return.
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Answer: TRUE Diffi P P


culty: 1 Easy
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4
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P


No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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