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

1 Test

,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
Foundations of Financial Management, 17e (Block)
Chapter 1 The Goals and Activities of Financial Management


1) As financeemerged asa new field, muchemphasiswas placed onmergersand acquisitions.
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Answer: TRUE
Difficulty:1Easy
Topic: Introductionto corporate finance
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation

2) Inflation is assumed to beatemporaryproblemthat does not affect financialdecisions.
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Answer: FALSE
Difficulty:1 Easy
Topic: Financialmanagement decisions
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation

3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
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investments.

Answer: FALSE
Difficulty:1 Easy
Topic: Introduction to corporate finance
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation

4) Realcapitaliscomposed oflong-termplant and equipment.

Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
2

,AACSB: Reflective Thinking
Accessibility: Keyboard
Navigation

5) Duringthe1930s, financialpracticerevolved around suchtopicsasthepreservation ofcapital,
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maintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.

Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation

6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
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Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation

7) Recently, theemphasisoffinancialmanagement has beenonthe relationship betweenriskand
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return.

Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
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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

8) Thefirst NobelPrizesgiven to financeprofessorswerefortheircontributionstocapital
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structure theoryand portfolio theories of risk and return.

Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
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Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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3

, a number of other areas.
Bloom's: Remember




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