1
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
,TestgtBankgtforgtFoundationsgtofgtFinancialgtManagementgtbygtBlockgt>Hirtgt|gtCompletegtEdition
FoundationsgtofgtFinancialgtManagement,gt17egt(Block)
Chaptergt1 ThegtGoalsgtandgtActivitiesgtofgtFinancialgtManagement
1) Asgtfinanceemergedgtasagtnewgtfield,gtmuchemphasiswas placed onmergersand acquisitions.
j
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introductiontogtcorporategtfinance
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
2) Inflation is assumed tog t beatemporaryproblemthat does notg t affectg t financialdecisions.
j j
Answer:
FALSE
Difficulty:1gtEasy
gt
Topic: Financialmanagement decisions
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-
j
termplantgtandequipment,gtaswellasothertangiblegtinvestments.
j j
Answer:
FALSE
Difficulty:1gtEasy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
4) Realcapitaliscomposedgtoflong-termplantgt andgtequipment.
2
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
,Answer:
TRUE
Difficulty:1Easy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's: Remember
3
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
, AACSB: Reflective
ThinkinggtAccessibilit
y: KeyboardgtNavigation
5) Duringthe1930s,gtfinancialpracticerevolvedaroundsuchtopicsasthepreservation ofcapital,g t m
j j
aintenanceofliquidity,gtt hereorganizationoffinanciallytroubledgtcorporations,gtandbankruptcy.
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
6) Inthegtmidgt1950s,gtfinancebegantogtchangetogtamoreanalytical,gtdecision-orientedgtapproach.
j
Answer:
TRUE
Difficulty:1Easy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
7) Recently,gttheemphasisoffinancialmanagement gthas beenonthegtrelationshipgtbetweenriskandg
j j
treturn.
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective:g t g t 01-
01gtThegtfieldgtofgtfinancegtintegratesgtconceptsgtfromgteconomics,gtaccounting,gtandgtagtnumbergtofgtothergta
reas.;gt01-
03gtThegtrelationshipgtofgtriskgttogtreturngtisgtagtcentralgtfocusgtofgtfinance.gtBloom's:g t g t Understand
AACSB: Analytical
ThinkinggtAccessibility
: KeyboardgtNavigation
8) ThefirstgtNobelPrizesgiven togtfinanceprofessorswerefortheircontributionstocapitalgt
j j
4
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
,TestgtBankgtforgtFoundationsgtofgtFinancialgtManagementgtbygtBlockgt>Hirtgt|gtCompletegtEdition
FoundationsgtofgtFinancialgtManagement,gt17egt(Block)
Chaptergt1 ThegtGoalsgtandgtActivitiesgtofgtFinancialgtManagement
1) Asgtfinanceemergedgtasagtnewgtfield,gtmuchemphasiswas placed onmergersand acquisitions.
j
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introductiontogtcorporategtfinance
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
2) Inflation is assumed tog t beatemporaryproblemthat does notg t affectg t financialdecisions.
j j
Answer:
FALSE
Difficulty:1gtEasy
gt
Topic: Financialmanagement decisions
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-
j
termplantgtandequipment,gtaswellasothertangiblegtinvestments.
j j
Answer:
FALSE
Difficulty:1gtEasy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
4) Realcapitaliscomposedgtoflong-termplantgt andgtequipment.
2
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
,Answer:
TRUE
Difficulty:1Easy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's: Remember
3
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.
, AACSB: Reflective
ThinkinggtAccessibilit
y: KeyboardgtNavigation
5) Duringthe1930s,gtfinancialpracticerevolvedaroundsuchtopicsasthepreservation ofcapital,g t m
j j
aintenanceofliquidity,gtt hereorganizationoffinanciallytroubledgtcorporations,gtandbankruptcy.
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
6) Inthegtmidgt1950s,gtfinancebegantogtchangetogtamoreanalytical,gtdecision-orientedgtapproach.
j
Answer:
TRUE
Difficulty:1Easy
gt
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective: 01-
01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,gtandg t agtnumbergtofgtothergtareas.
j
Bloom's:
RemembergtAACS
B: ReflectiveThinking
Accessibility: KeyboardNavigation
7) Recently,gttheemphasisoffinancialmanagement gthas beenonthegtrelationshipgtbetweenriskandg
j j
treturn.
Answer:
TRUE
gtDifficulty:1Easy
Topic: Introduction togtcorporategtfinance
j
LearninggtObjective:g t g t 01-
01gtThegtfieldgtofgtfinancegtintegratesgtconceptsgtfromgteconomics,gtaccounting,gtandgtagtnumbergtofgtothergta
reas.;gt01-
03gtThegtrelationshipgtofgtriskgttogtreturngtisgtagtcentralgtfocusgtofgtfinance.gtBloom's:g t g t Understand
AACSB: Analytical
ThinkinggtAccessibility
: KeyboardgtNavigation
8) ThefirstgtNobelPrizesgiven togtfinanceprofessorswerefortheircontributionstocapitalgt
j j
4
Copyrightgt©gt2019gtMcGraw-HillgtEducation.gtAllgtrightsgtreserved.
NogtreproductiongtorgtdistributiongtwithoutgtthegtpriorgtwrittengtconsentgtofgtMcGraw-
HillgtEducation.