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