FoundationsvofvFinancialvManagement,v17ev(Block)
Chapterv1 ThevGoalsvandvActivitiesvofvFinancialvManagement
1) Asvfinancevemergedvasvavnewvfield,vmuchvemphasisvwasvplacedvonvmergersvandvacquisitions.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
2) Inflationvisvassumedvtovbevavtemporaryvproblemvthatvdoesvnotvaffectvfinancialvdecisions.
Answer:v FALSEvDif
ficulty:v1vEasy
Topic: Financialvmanagementvdecisions
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
3) Financialvcapitalvisvcomposedvofvlong-
termvplantvandvequipment,vasvwellvasvothervtangiblevinvestments.
Answer:v FALSEvDif
ficulty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
4) Realvcapitalvisvcomposedvofvlong-termvplantvandvequipment.
Answer:v TRUEvDiffi
1
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
,culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's: Remember
2
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
,AACSB:v ReflectivevThinkingvAcces
sibility:v v KeyboardvNavigation
5) Duringvthev1930s,vfinancialvpracticevrevolvedvaroundvsuchvtopicsvasvthevpreservationvofvcapital,v
maintenancevofvliquidity,vthevreorganizationvofvfinanciallyvtroubledvcorporations,vandvbankruptcy.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
6) Invthevmidv1950s,vfinancevbeganvtovchangevtovavmorevanalytical,vdecision-orientedvapproach.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
7) Recently,vthevemphasisvofvfinancialvmanagementvhasvbeenvonvthevrelationshipvbetweenvriskvandvr
eturn.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective:v 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.;v01-03vThevrelationshipvofvriskvtovreturnvisvavcentralvfocusvofvfinance.vBloom's:v Understand
AACSB:v AnalyticalvThinkingvAcces
sibility:v v KeyboardvNavigation
8) ThevfirstvNobelvPrizesvgivenvtovfinancevprofessorsvwerevforvtheirvcontributionsvtovcapitalvs
tructurevtheoryvandvportfoliovtheoriesvofvriskvandvreturn.
Answer:v TRUEvDiffi
culty:v1vEasy
3
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
, Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's: Remember
4
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
Chapterv1 ThevGoalsvandvActivitiesvofvFinancialvManagement
1) Asvfinancevemergedvasvavnewvfield,vmuchvemphasisvwasvplacedvonvmergersvandvacquisitions.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
2) Inflationvisvassumedvtovbevavtemporaryvproblemvthatvdoesvnotvaffectvfinancialvdecisions.
Answer:v FALSEvDif
ficulty:v1vEasy
Topic: Financialvmanagementvdecisions
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
3) Financialvcapitalvisvcomposedvofvlong-
termvplantvandvequipment,vasvwellvasvothervtangiblevinvestments.
Answer:v FALSEvDif
ficulty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
4) Realvcapitalvisvcomposedvofvlong-termvplantvandvequipment.
Answer:v TRUEvDiffi
1
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
,culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's: Remember
2
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
,AACSB:v ReflectivevThinkingvAcces
sibility:v v KeyboardvNavigation
5) Duringvthev1930s,vfinancialvpracticevrevolvedvaroundvsuchvtopicsvasvthevpreservationvofvcapital,v
maintenancevofvliquidity,vthevreorganizationvofvfinanciallyvtroubledvcorporations,vandvbankruptcy.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
6) Invthevmidv1950s,vfinancevbeganvtovchangevtovavmorevanalytical,vdecision-orientedvapproach.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's:
Rememberv AACSB
: vReflectivevThinking
Accessibility: KeyboardvNavigation
7) Recently,vthevemphasisvofvfinancialvmanagementvhasvbeenvonvthevrelationshipvbetweenvriskvandvr
eturn.
Answer:v TRUEvDiffi
culty:v1vEasy
Topic:v v Introductionvtovcorporatevfinance
LearningvObjective:v 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.;v01-03vThevrelationshipvofvriskvtovreturnvisvavcentralvfocusvofvfinance.vBloom's:v Understand
AACSB:v AnalyticalvThinkingvAcces
sibility:v v KeyboardvNavigation
8) ThevfirstvNobelvPrizesvgivenvtovfinancevprofessorsvwerevforvtheirvcontributionsvtovcapitalvs
tructurevtheoryvandvportfoliovtheoriesvofvriskvandvreturn.
Answer:v TRUEvDiffi
culty:v1vEasy
3
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.
, Topic:v v Introductionvtovcorporatevfinance
LearningvObjective: 01-
01vThevfieldvofvfinancevintegratesvconceptsvfromveconomics,vaccounting,vandvavnumbervofvothervare
as.
Bloom's: Remember
4
Copyrightv©v2019vMcGraw-HillvEducation.vAllvrightsvreserved.
NovreproductionvorvdistributionvwithoutvthevpriorvwrittenvconsentvofvMcGraw-HillvEducation.