1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
,Foundations of Financial Management, 18e (Block) 3i 3i 3i 3i 3i
Chapter 1 The Goals and Activities of Financial Management
3i 3i 3i 3i 3i 3i 3i
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy 3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: FALSE Di 3 i 3i
fficulty: 1 Easy 3i 3i
Topic: Financial management decisions 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
3) Financial capital is composed of long- 3i 3i 3i 3i 3i
term plant and equipment, as well as other tangible investments.
3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: FALSE Di 3 i 3i
fficulty: 1 Easy 3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
4) Real capital is composed of long-term plant and equipment.
3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. 3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
,ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01-
3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
, AACSB: Reflective Thinking Acce
3 i 3i 3i
ssibility: Keyboard Navigation
3 i3 i 3i
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
7) Recently, the emphasis of financial management has been on the relationship between risk and
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
return.
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i 3 i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3 i
AACSB: Analytical Thinking Acce
3 i 3i 3i
ssibility: Keyboard Navigation
3 i3 i 3i
8) The first Nobel Prizes given to finance professors were for their contributions to capital
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
structure theory and portfolio theories of risk and return.
3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. 3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Copyright © 2019 McGraw-Hill Education. All rights reserved.
3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
,Foundations of Financial Management, 18e (Block) 3i 3i 3i 3i 3i
Chapter 1 The Goals and Activities of Financial Management
3i 3i 3i 3i 3i 3i 3i
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy 3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: FALSE Di 3 i 3i
fficulty: 1 Easy 3i 3i
Topic: Financial management decisions 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
3) Financial capital is composed of long- 3i 3i 3i 3i 3i
term plant and equipment, as well as other tangible investments.
3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: FALSE Di 3 i 3i
fficulty: 1 Easy 3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
4) Real capital is composed of long-term plant and equipment.
3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. 3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
,ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01-
3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
, AACSB: Reflective Thinking Acce
3 i 3i 3i
ssibility: Keyboard Navigation
3 i3 i 3i
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.
Bloom's:
Remember AACS 3 i
B: Reflective Thinking i
3 3i
Accessibility: Keyboard Navigation 3i
7) Recently, the emphasis of financial management has been on the relationship between risk and
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
return.
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
Topic: Introduction to corporate finance
3 i 3 i 3i 3i 3i
Learning Objective: 01- 3i 3 i
01 The field of finance integrates concepts from economics, accounting, and a number of other ar
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
eas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3 i
AACSB: Analytical Thinking Acce
3 i 3i 3i
ssibility: Keyboard Navigation
3 i3 i 3i
8) The first Nobel Prizes given to finance professors were for their contributions to capital
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
structure theory and portfolio theories of risk and return.
3i 3i 3i 3i 3i 3i 3i 3i
Answer: TRUE Dif 3 i 3i
ficulty: 1 Easy
3i 3i
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. 3i 3i 3i 3i 3i 3i 3i
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
3i 3i 3i 3i 3i 3i 3i 3i 3i 3i 3i
