Full Test Bank – Foundations of Financial
Management, 18th Edition () by
Stanley B. Block, Geoffrey A. Hirt & Bartley R.
Danielsen | Chapters 1–21 | Verified Q&A
with Rationales | ISBN-10: 126409762X /
ISBN-13: 9781264097623
,Page | 1
, Chapter 1 The Goals and Activities of Financial Management
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
Correct Answer: FALSE Difficulty: 1 Easy
Topic: Financial management decisions
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Financial capital is composed of long-term plant and equipment, as well as other tangible investments.
Correct Answer: FALSE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) Real capital is composed of long-term plant and equipment.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Page | 2
, Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking Accessibility: Keyboard Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) Recently, the emphasis of financial management has been on the relationship between risk and return.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's:
Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
Page | 3
Management, 18th Edition () by
Stanley B. Block, Geoffrey A. Hirt & Bartley R.
Danielsen | Chapters 1–21 | Verified Q&A
with Rationales | ISBN-10: 126409762X /
ISBN-13: 9781264097623
,Page | 1
, Chapter 1 The Goals and Activities of Financial Management
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
Correct Answer: FALSE Difficulty: 1 Easy
Topic: Financial management decisions
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
3) Financial capital is composed of long-term plant and equipment, as well as other tangible investments.
Correct Answer: FALSE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
4) Real capital is composed of long-term plant and equipment.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Page | 2
, Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking Accessibility: Keyboard Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.
Bloom's: Remember AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
7) Recently, the emphasis of financial management has been on the relationship between risk and return.
Correct Answer: TRUE Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting, and a
number of other areas.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's:
Understand
AACSB: Analytical Thinking Accessibility: Keyboard Navigation
Page | 3
