FundamentalsofCorporateFinance,5thEdition
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byRobertParrino,DavidKidwell,AllChapters1-21
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, Chapter 1 v The Financial Manager and the Firm
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1) The financial manager is responsible for making decisions that are in the best interestsof the
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v firm's owners. v
Answer: TRUE Diff: v v v
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LearningObjective: LO 1 Bloomcode: v v v v v v
vKnowledge AACSB: Analytic v v
IMA: FSAvv v
AICPA: Process and Resource Management Perspectives
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2) A patent is aproductive asset for atechnology-based firm.
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Answer: TRUE
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Diff: 1
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LearningObjective: LO 1 Bloomcode: v v v v v v
vKnowledge AACSB: Analytic v v
IMA: Business Economics
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AICPA: Global and Industry Perspectives
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3) Intangible assets generatemost of amanufacturingfirm's cash flows.
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Answer: FALSE
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Diff: 2
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LearningObjective: LO 1 Bloomcode: v v v v v v
vApplication AACSB: Analytic v v
IMA: Corporate Finance
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AICPA: Process and Resource Management Perspectives
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4) Themostfundamental wayabusinesscan growin size isbyreinvestingcashflowsor earnings.
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Answer: TRUE
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Diff: 1
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LearningObjective: LO 1 Bloomcode: v v v v v v
vKnowledge AACSB: Analytic v v
IMA: FSAvv v
AICPA: Process and Resource Management Perspectives
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