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 Dif r q rq


ficulty: 1 Easy rq rq


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


01 The field of finance integrates concepts from economics, accounting, and a number of other ar
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eas.
Bloom's:
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B: Reflective Thinking qr rq


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2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
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Answer: FALSE Di r q rq


fficulty: 1 Easy rq rq


Topic: Financial management decisions rq rq


Learning Objective: 01- rq


01 The field of finance integrates concepts from economics, accounting, and a number of other ar
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eas.
Bloom's:
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B: Reflective Thinking qr rq


Accessibility: Keyboard Navigation rq




3) Financial capital is composed of long- rq rq rq rq rq


term plant and equipment, as well as other tangible investments.
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Answer: FALSE Di r q rq


fficulty: 1 Easy rq rq


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


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 r q


B: Reflective Thinking qr rq


Accessibility: Keyboard Navigation rq


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


No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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,4) Real capital is composed of long-term plant and equipment.
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Answer: TRUE Dif
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ficulty: 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 ar
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eas.
Bloom's: Remember




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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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, AACSB: Reflective Thinking Acce
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ssibility: Keyboard Navigation
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5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
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rqmaintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy
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.

Answer: TRUE Dif r q rq


ficulty: 1 Easy rq rq


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


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 r q


B: Reflective Thinking qr rq


Accessibility: Keyboard Navigation rq




6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
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Answer: TRUE Dif r q rq


ficulty: 1 Easy rq rq


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


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 r q


B: Reflective Thinking qr rq


Accessibility: Keyboard Navigation rq




7) Recently, the emphasis of financial management has been on the relationship between risk and
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return.
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Answer: TRUE Dif r q rq


ficulty: 1 Easy rq rq


Topic: Introduction to corporate finance
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Learning Objective: 01- rq r q


01 The field of finance integrates concepts from economics, accounting, and a number of other ar
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eas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
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AACSB: Analytical Thinking Acce
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ssibility: Keyboard Navigation
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8) The first Nobel Prizes given to finance professors were for their contributions to capital
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structure theory and portfolio theories of risk and return.
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Answer: TRUE Dif r q rq


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Copyright © 2019 McGraw-Hill Education. All rights reserved. rq rq rq rq rq rq rq


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