FundamentalsofCorporateFinance,5thEdition
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byRobertParrino,DavidKidwell,AllChapters1-21
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1
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, Chapter 1 b The Financial Manager and the Firm
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1) The financial manager is responsible for making decisions that are in the best interests of the
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bfirm's owners. b
Answer: TRUE Diff: b b b
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b
Learning Objective: LO 1 Bloomcode:
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Knowledge AACSB: Analytic
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IMA: FSA bb b
AICPA: Process and Resource Management Perspectives
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2) A patent is a productive asset for a technology-based firm.
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Answer: TRUE
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Diff: 1
b
Learning Objective: LO 1 Bloomcode:
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Knowledge AACSB: Analytic
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IMA: Business Economics
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AICPA: Global and Industry Perspectives
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3) Intangible assets generate most of amanufacturingfirm's cash flows.
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Answer: FALSE
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Diff: 2
b
Learning Objective: LO 1 Bloomcode:
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Application AACSB: Analytic
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IMA: Corporate Finance
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AICPA: Process and Resource Management Perspectives
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4) Themost fundamental waya business can grow in size is byreinvestingcash flows or earnings.
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Answer: TRUE
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Diff: 1
b
Learning Objective: LO 1 Bloomcode:
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Knowledge AACSB: Analytic
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IMA: FSA bb b
AICPA: Process and Resource Management Perspectives
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3