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Fundamentals of Corporate Finance, 5th Edition
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by Robert Parrino, David Kidwell, All Chapters 1 - 21
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1
,2
, Chapterww1 ThewwFinancialwwManagerwwandwwthewwFirm
1) Thewwfinancialwwmanagerwwiswwresponsiblewwforwwmakingwwdecisionswwthatwwarewwinwwthewwbestwwi
nterestswwofwwthew w firm'swwowners.
Answer:www w TRUEw w
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:wwwwww FSA
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
2) Awwpatentwwiswwawwproductivewwassetwwforwwawwtechnology-
basedwwfirm.wwwwAnswer:www w TRUE
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:www w BusinesswwEconomics
AICPA:www w GlobalwwandwwIndustrywwPerspectives
3) Intangiblewwassetswwgeneratewwmostwwofwwawwmanufacturingwwfirm'swwca
shwwflows.wwwwAnswer:www w FALSE
Diff:ww2
LearningwwObjective:www w LOww1w w Bloo
mcode:www w ApplicationwwAACSB:w w An
alytic
IMA:wwwwwwCorporatewwFinance
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
4) Thewwmostwwfundamentalwwwaywwawwbusinesswwcanwwgrowwwinwwsizewwiswwbywwreinvestingwwcashwwflo
wswworwwearnings.wwwwAnswer:www w TRUE
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:wwwwww FSA
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
3
Fundamentals of Corporate Finance, 5th Edition
ww ww ww ww ww
by Robert Parrino, David Kidwell, All Chapters 1 - 21
ww ww ww ww ww ww ww ww ww
1
,2
, Chapterww1 ThewwFinancialwwManagerwwandwwthewwFirm
1) Thewwfinancialwwmanagerwwiswwresponsiblewwforwwmakingwwdecisionswwthatwwarewwinwwthewwbestwwi
nterestswwofwwthew w firm'swwowners.
Answer:www w TRUEw w
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:wwwwww FSA
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
2) Awwpatentwwiswwawwproductivewwassetwwforwwawwtechnology-
basedwwfirm.wwwwAnswer:www w TRUE
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:www w BusinesswwEconomics
AICPA:www w GlobalwwandwwIndustrywwPerspectives
3) Intangiblewwassetswwgeneratewwmostwwofwwawwmanufacturingwwfirm'swwca
shwwflows.wwwwAnswer:www w FALSE
Diff:ww2
LearningwwObjective:www w LOww1w w Bloo
mcode:www w ApplicationwwAACSB:w w An
alytic
IMA:wwwwwwCorporatewwFinance
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
4) Thewwmostwwfundamentalwwwaywwawwbusinesswwcanwwgrowwwinwwsizewwiswwbywwreinvestingwwcashwwflo
wswworwwearnings.wwwwAnswer:www w TRUE
Diff:ww1
LearningwwObjective:www w LOww1w w Bloo
mcode:wwww KnowledgewwAACSB:w w An
alytic
IMA:wwwwww FSA
AICPA:www w ProcesswwandwwResourcewwManagementwwPerspectives
3