Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
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Foundations of Financial Management, 17e (Block)
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Chapter 1 The Goals and Activities of Financial Management
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1) As financeemerged asa new field, muchemphasiswas placed onmergersand acquisitions.
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Answer: TRUE
Difficulty:1Easy
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Topic: Introductionto corporate finance b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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ba number of other areas.
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Bloom's: Remember
AACSB: ReflectiveThinking
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Accessibility: KeyboardNavigation
2) Inflation is assumed to beatemporaryproblemthat does not affect financialdecisions.
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Answer: FALSE
Difficulty:1Easy
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Topic: Financialmanagement decisions j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
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ba number of other areas.
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Bloom's: Remember
AACSB: ReflectiveThinking
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Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
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investments.
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Answer: FALSE
Difficulty:1Easy
b b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
b j b
ba number of other areas.
b b b b
Bloom's: Remember
AACSB: ReflectiveThinking
b
Accessibility: KeyboardNavigation
4) Realcapitaliscomposed oflong-termplant and equipment. b b b
Answer: TRUE
Difficulty:1Easy
b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
b j b
ba number of other areas.
b b b b
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,AACSB: Reflective Thinking
Accessibility:
b Keyboard
Navigation
b
5) Duringthe1930s, financialpracticerevolvedaroundsuchtopicsasthepreservation ofcapital,
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bmaintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.
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Answer: TRUE
Difficulty:1Easy
b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
b j b
ba number of other areas.
b b b b
Bloom's: Remember
AACSB: ReflectiveThinking
b
Accessibility: KeyboardNavigation
6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
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Answer: TRUE
Difficulty:1Easy
b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
b j b
ba number of other areas.
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Bloom's: Remember
AACSB: ReflectiveThinking
b
Accessibility: KeyboardNavigation
7) Recently, theemphasisoffinancialmanagement has beenonthe relationship betweenriskand
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return.
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Answer: TRUE
Difficulty:1Easy
b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
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and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
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Bloom's: Understand
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AACSB: Analytical Thinking
Accessibility:
b Keyboard
Navigation
b
8) Thefirst NobelPrizesgiven to financeprofessorswerefortheircontributionstocapital
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structure theoryand portfolio theories of risk and return.
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Answer: TRUE
Difficulty:1Easy
b
Topic: Introduction to corporate finance j b b
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting,
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3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, a number of other areas.
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Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.