TEST BANK FOR Fundamentals of Financial Management, Concise Edition (MindTap Course List) 10th Edition by Eugene F. Brigham, Joel F. Houston Test Bank for All chapters

TEST BANK FOR Fundamentals of Financial Management, Concise Edition (MindTap Course List) 10th Edition by Eugene F. Brigham, Joel F. Houston Test Bank for All chapters Table of Contents Chapter 1 - An Overview Of Financial Management Chapter 2 - Financial Markets And Institutions Chapter 3 - Financial Statements, Cash Flow, And Taxes Chapter 4 - Analysis Of Financial Statements Chapter 5 - Time Value Of Money Chapter 6 - Interest Rates Chapter 7 - Bonds And Their Valuation Chapter 8 - Risk And Rates Of Return Chapter 9 - Stocks And Their Valuation Chapter 10 - The Cost Of Capital Chapter 11 - The Basics Of Capital Budgeting Chapter 12 - Cash Flow Estimation And Risk Analysis Chapter 13 - Capital Structure And Leverage Chapter 14 - Distributions To Shareholders:dividends And Share Repurchases Chapter 15 - Working Capital Management Chapter 16 - Financial Planning And Forecasting Chapter 17 - Multinational Financial Management Appendix Web Appendix 07A Zero Coupon Bonds Web Appendix 07C Bankruptcy and Reorganization Web Appendix 08A Calculating Beta Coefficients Web Appendix 12C Using the CAPM Web Appendix 12D Techniques for Measuring Beta Risk Web Appendix 12E Comparing Mutually Exclusive Projects with Unequal Lives Web Appendix 13A Degree of Leverage . Page 1 Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used in multiple-choice questions. Multiple Choice: True/False 1. In most corporations, the CFO ranks under the CEO. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False PREFACE NAME: T/F LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 2. The Chairman of the Board must also be the CEO. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM 3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-1 What Is Finance? QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance? NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Role of finance KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 4. Partnerships and proprietorships generally have a tax advantage over corporations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 6. An advantage of the corporate form of organization is that corporations are generally less highly regulated than proprietorships and partnerships. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 7. Some partners in a partnership may have different rights, privileges, and responsibilities than other partners. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 8. One advantage of the corporate form of organization is that it avoids double taxation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 9. It is generally harder to transfer one's ownership interest in a partnership than in a corporation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 10. One danger of starting a proprietorship is that you may be exposed to personal liability if the business goes bankrupt. This problem would be avoided if you formed a corporation to operate the business. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 11. If a corporation elects to be taxed as an S corporation, then it can avoid the corporate tax. However, its stockholders will have to pay personal taxes on the firm's net income. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM 12. If a corporation elects to be taxed as an S corporation, then both it and its stockholders can avoid all Federal taxes. This provision was put into the Federal Tax Code in order to encourage the formation of small businesses. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: EASY REFERENCES: 1-3 Forms of Business Organization QUESTION TYPE: True / False HAS VARIABLES: False LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's organization, and as an analyst using public information. TOPICS: Forms of organization KEYWORDS: Bloom's: Knowledge DATE CREATED: 8/10/2018 9:02 AM DATE MODIFIED: 8/10/2018 9:02 AM