Test Bank for Foundations of Financial Management, 18th Edition by Stanley Block, Geoffrey Hirt, Bartley Danielsen |ALl Chapters |100% Verified & LATEST

Test Bank for Foundations of Financial Management –
18th Edition by Block & Hirt | Verified Exam Questions
with Detailed Answers




1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.

,Foundations of Financial Management, 17e (Block)
q q q q q



Chapter 1 The Goals and Activities of Financial Management
q q q q q q q




1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
q q q q q q q q q q q q q q




Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember q



AACSB: Reflective Thinking q q



Accessibility: Keyboard Navigation q




2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
q q q q q q q q q q q q q




Answer: FALSE q q



Difficulty: 1 Easy q q



Topic: Financial management decisions q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember q



AACSB: Reflective Thinking q q



Accessibility: Keyboard Navigation q




3) Financial capital is composed of long-term plant and equipment, as well as other tangible
q q q q q q q q q q q q q q



investments.

Answer: FALSE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember q



AACSB: Reflective Thinking q q



Accessibility: Keyboard Navigation q




4) Real capital is composed of long-term plant and equipment.
q q q q q q q q




Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember

2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.

,AACSB: Reflective Thinking q q q



Accessibility: Keyboard q q q



Navigation

5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
q q q q q q q q q q q q q q



maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
q q q q q q q q q q




Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember q



AACSB: Reflective Thinking q q



Accessibility: Keyboard Navigation q




6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
q q q q q q q q q q q q q




Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.
q q q q q



Bloom's: Remember q



AACSB: Reflective Thinking q q



Accessibility: Keyboard Navigation q




7) Recently, the emphasis of financial management has been on the relationship between risk and
q q q q q q q q q q q q q q



return.

Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q



and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
q q q q q q q q q q q q q q q q q q q q



Bloom's: Understand q



AACSB: Analytical Thinking q q q



Accessibility: Keyboard q q q



Navigation

8) The first Nobel Prizes given to finance professors were for their contributions to capital
q q q q q q q q q q q q q q



structure theory and portfolio theories of risk and return.
q q q q q q q q




Answer: TRUE q q



Difficulty: 1 Easy q q



Topic: Introduction to corporate finance
q q q q q



Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q




3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.

, and a number of other areas.
q q q q q



Bloom's: Remember




4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.