1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
,Foundations of Financial Management, 18e (Block)
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Chapter 1 The Goals and Activities of Financial Management
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1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
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Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
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Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
P P P P P P P P P P P P P
Answer: FALSE Dif P P
ficulty: 1 Easy P P
Topic: Financial management decisions P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
3) Financial capital is composed of long-
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term plant and equipment, as well as other tangible investments.
P P P P P P P P P
Answer: FALSE Dif P P
ficulty: 1 Easy P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
4) Real capital is composed of long-term plant and equipment.
P P P P P P P P
Answer: TRUE Diffi P P
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
,culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01-
P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
, AACSB: Reflective Thinking Acces
P P P
sibility: Keyboard Navigation
PP P
5) During the 1930s, financial practice revolved around such topics as the preservation of capital, m
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aintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
P P P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
P P P P P P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
7) Recently, the emphasis of financial management has been on the relationship between risk and re
P P P P P P P P P P P P P P
turn.
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P P
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
P P P P P P P P P P P P P P P
AACSB: Analytical Thinking Acces
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sibility: Keyboard Navigation
PP P
8) The first Nobel Prizes given to finance professors were for their contributions to capital st
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ructure theory and portfolio theories of risk and return.
P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
Copyright © 2019 McGraw-Hill Education. All rights reserved.
P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
,Foundations of Financial Management, 18e (Block)
P P P P P
Chapter 1 The Goals and Activities of Financial Management
P P P P P P P
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
P P P P P P P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
P P P P P P P P P P P P P
Answer: FALSE Dif P P
ficulty: 1 Easy P P
Topic: Financial management decisions P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
3) Financial capital is composed of long-
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term plant and equipment, as well as other tangible investments.
P P P P P P P P P
Answer: FALSE Dif P P
ficulty: 1 Easy P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
4) Real capital is composed of long-term plant and equipment.
P P P P P P P P
Answer: TRUE Diffi P P
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
,culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01-
P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
, AACSB: Reflective Thinking Acces
P P P
sibility: Keyboard Navigation
PP P
5) During the 1930s, financial practice revolved around such topics as the preservation of capital, m
P P P P P P P P P P P P P P
aintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
P P P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
P P P P P P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.
Bloom's:
Remember AACSB P
: Reflective Thinking P P
Accessibility: Keyboard Navigation P
7) Recently, the emphasis of financial management has been on the relationship between risk and re
P P P P P P P P P P P P P P
turn.
Answer: TRUE Diffi P P
culty: 1 Easy
P P
Topic: Introduction to corporate finance
P P P P P
Learning Objective: 01- P P
01 The field of finance integrates concepts from economics, accounting, and a number of other area
P P P P P P P P P P P P P P P
s.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
P P P P P P P P P P P P P P P
AACSB: Analytical Thinking Acces
P P P
sibility: Keyboard Navigation
PP P
8) The first Nobel Prizes given to finance professors were for their contributions to capital st
P P P P P P P P P P P P P P
ructure theory and portfolio theories of risk and return.
P P P P P P P P
Answer: TRUE Diffi P P
culty: 1 Easy
P P
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. P P P P P P P
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
P P P P P P P P P P P
