TEST BANK For Foundations of Financial Management, 18th Edition by Stanley Block, Geoffrey Hirt, Bartley Danielsen| Verified Chapter's 1 - 21 | Complete Newest Version

Foundations of Financial Management, 17e (Block)
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.
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Answer: TRUE Dif 0 0 00


ficulty: 1 Easy 00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01- 00


01 The field of finance integrates concepts from economics, accounting, and a number of other
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areas.
Bloom's:
Remember AACS 0 0


B: Reflective Thinking 0 00


Accessibility: Keyboard Navigation 00




2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
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Answer: FALSE D 0 0 00


ifficulty: 1 Easy 00 00


Topic: Financial management decisions 00 00


Learning Objective: 01- 00


01 The field of finance integrates concepts from economics, accounting, and a number of other
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areas.
Bloom's:
Remember AACS 0 0


B: Reflective Thinking 0 00


Accessibility: Keyboard Navigation 00




3) Financial capital is composed of long- 00 00 00 00 00


term plant and equipment, as well as other tangible investments.
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Answer: FALSE D 0 0 00


ifficulty: 1 Easy 00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01- 00


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.
Bloom's:
Remember AACS 0 0


B: Reflective Thinking 0 00


Accessibility: Keyboard Navigation 00




4) Real capital is composed of long-term plant and equipment.
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1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-
00 00 00 00 00 00 00 00 00 00

Hill Education.

,Answer: TRUE Dif
0 0 00


ficulty: 1 Easy
00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01-
00


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.
Bloom's: Remember




2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
00 00 00 00 00 00 00

No reproduction or distribution without the prior written consent of McGraw-
00 00 00 00 00 00 00 00 00 00

Hill Education.

,AACSB: Reflective Thinking Acce
0 0 00 00


ssibility: Keyboard Navigation
0 0 0 0 00




5) During the 1930s, financial practice revolved around such topics as the preservation of capit
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al, maintenance of liquidity, the reorganization of financially troubled corporations, and bankru
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ptcy.

Answer: TRUE Dif 0 0 00


ficulty: 1 Easy
00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01-
00


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.
Bloom's:
Remember AACS 0 0


B: Reflective Thinking 0 00


Accessibility: Keyboard Navigation 00




6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
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Answer: TRUE Dif 0 0 00


ficulty: 1 Easy
00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01-
00


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.
Bloom's:
Remember AACS 0 0


B: Reflective Thinking 0 00


Accessibility: Keyboard Navigation 00




7) Recently, the emphasis of financial management has been on the relationship between risk a
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nd return.
00




Answer: TRUE Dif 0 0 00


ficulty: 1 Easy
00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01-
00 0 0


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.; 01- 00


03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
00 00 00 00 00 00 00 00 00 00 00 00 00 0 0


AACSB: Analytical Thinking Acce
0 0 00 00


ssibility: Keyboard Navigation
0 0 0 0 00




8) The first Nobel Prizes given to finance professors were for their contributions to capit
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al structure theory and portfolio theories of risk and return.
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3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
00 00 00 00 00 00 00

No reproduction or distribution without the prior written consent of McGraw-
00 00 00 00 00 00 00 00 00 00

Hill Education.

, Answer: TRUE Dif
0 0 00


ficulty: 1 Easy
00 00


Topic: Introduction to corporate finance
0 0 0 0 00 00 00


Learning Objective: 01-
00


01 The field of finance integrates concepts from economics, accounting, and a number of other
00 00 00 00 00 00 00 00 00 00 00 00 00 00 00


areas.
Bloom's: Remember




4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
00 00 00 00 00 00 00

No reproduction or distribution without the prior written consent of McGraw-
00 00 00 00 00 00 00 00 00 00

Hill Education.