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