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