TESTBANK i
FundamentalsofCorporateFinance,5thEdition
i i i i i
byRobertParrino,DavidKidwell,AllChapters1-21
i i i i i i i i i
1
,2
, Chapter i1 The iFinancial iManager iand ithe iFirm
1) The ifinancial imanager iis iresponsible ifor imaking idecisions ithat iare iin ithe ibest iinterests iof ithe
i firm's iowners.
Answer: i i TRUE i Diff:
i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i i FSA
AICPA: i i Process iand iResource iManagement iPerspectives
2) A ipatent iis ia iproductive iasset ifor ia itechnology-based
ifirm. i iAnswer: i i TRUE
Diff: i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i Business iEconomics
AICPA: i i Global iand iIndustry iPerspectives
3) Intangible iassets igenerate imost iof ia imanufacturing ifirm's icash iflows. i
iAnswer: i i FALSE
Diff: i2
Learning iObjective: i i LO i1
i Bloomcode: i i Application iAACSB:
i Analytic
IMA: i i iCorporate iFinance
AICPA: i i Process iand iResource iManagement iPerspectives
4) The imost ifundamental iway ia ibusiness ican igrow iin isize iis iby ireinvesting icash iflows ior iearnings. i
iAnswer: i i TRUE
Diff: i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i i FSA
AICPA: i i Process iand iResource iManagement iPerspectives
3
FundamentalsofCorporateFinance,5thEdition
i i i i i
byRobertParrino,DavidKidwell,AllChapters1-21
i i i i i i i i i
1
,2
, Chapter i1 The iFinancial iManager iand ithe iFirm
1) The ifinancial imanager iis iresponsible ifor imaking idecisions ithat iare iin ithe ibest iinterests iof ithe
i firm's iowners.
Answer: i i TRUE i Diff:
i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i i FSA
AICPA: i i Process iand iResource iManagement iPerspectives
2) A ipatent iis ia iproductive iasset ifor ia itechnology-based
ifirm. i iAnswer: i i TRUE
Diff: i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i Business iEconomics
AICPA: i i Global iand iIndustry iPerspectives
3) Intangible iassets igenerate imost iof ia imanufacturing ifirm's icash iflows. i
iAnswer: i i FALSE
Diff: i2
Learning iObjective: i i LO i1
i Bloomcode: i i Application iAACSB:
i Analytic
IMA: i i iCorporate iFinance
AICPA: i i Process iand iResource iManagement iPerspectives
4) The imost ifundamental iway ia ibusiness ican igrow iin isize iis iby ireinvesting icash iflows ior iearnings. i
iAnswer: i i TRUE
Diff: i1
Learning iObjective: i i LO i1
i Bloomcode: i i Knowledge iAACSB:
i Analytic
IMA: i i i FSA
AICPA: i i Process iand iResource iManagement iPerspectives
3
