TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
TEST BANK FOR FOUNDATIONS OF
FINANCIAL MANAGEMENT 18TH EDITION
BY STANLEY B. BLOCK, GEOFFREY A. HIRT,
BARTLEY DANIELSEN
Page | 1
,TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
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.
ANS: 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.
ANS: 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.
ANS: 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
Page | 2
,TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
Navigation
4) Real Capital Is Composed Of Long-Term Plant And Equipment.
ANS: TRUE Difficulty: 1 Easy Topic:
Introduction To Corporate Finance
Page | 3
, TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
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.
ANS: 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.
ANS: 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.
ANS: TRUE Difficulty: 1 Easy Topic:
Page | 4
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
TEST BANK FOR FOUNDATIONS OF
FINANCIAL MANAGEMENT 18TH EDITION
BY STANLEY B. BLOCK, GEOFFREY A. HIRT,
BARTLEY DANIELSEN
Page | 1
,TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
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.
ANS: 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.
ANS: 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.
ANS: 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
Page | 2
,TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
Navigation
4) Real Capital Is Composed Of Long-Term Plant And Equipment.
ANS: TRUE Difficulty: 1 Easy Topic:
Introduction To Corporate Finance
Page | 3
, TEST BANK FOR FOUNDATIONS OF FINANCIAL MANAGEMENT 18TH EDITION BY STANLEY
B. BLOCK,GEOFFREY A. HIRT, BARTLEY DANIELSEN
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.
ANS: 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.
ANS: 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.
ANS: TRUE Difficulty: 1 Easy Topic:
Page | 4
