Test Bank For Foundations of Financial Management 12th Canadian Edition by Stanley Block; Geoffrey Hirt; Bartley Danielsen; Doug Short.pdf

Foundationsm ofm Financialm Management,m 17em (Block)
Chapterm1 ThemGoalsmandmActivitiesmof mFinancialmManagement


1) Asmfinancememerged masmamnew mfield,mmuchmemphasismwasmplaced monmmergersmand macquisitions.

Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's:
Rememberm AACS
B: mReflectivemThinking

Accessibility: Keyboard mNavigation

2) Inflationmismassumed mtombemamtemporarymproblemmthat mdoesmnot maffect mfinancialmdecisions.

Answer:m FALSEmDi
fficulty:m1mEasy
Topic: Financialmmanagement mdecisions
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's:
Rememberm AACS
B: mReflectivemThinking

Accessibility: Keyboard mNavigation

3) Financialmcapitalmismcomposed mof mlong-
termmplant mand mequipment,masmwellmasmothermtangibleminvestments.

Answer:m FALSEmDi
fficulty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's:
Rememberm AACS
B: mReflectivemThinking

Accessibility: Keyboard mNavigation

4) Realmcapitalmismcomposed mof mlong-termmplant mand mequipment.

Answer:m TRUEmDiff
1
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.

,iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's: Remember




2
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.

,AACSB:m ReflectivemThinking mAcce
ssibility:m m Keyboard mNavigation

5) Duringmthem1930s,mfinancialmpracticemrevolved maround msuchmtopicsmasmthempreservationmof mcapit
al,mmaintenancemof mliquidity,mthemreorganizationmof mfinanciallymtroubled mcorporations,mand mbankru
ptcy.

Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's:
Rememberm AACS
B: mReflectivemThinking

Accessibility: Keyboard mNavigation

6) Inmthemmid m1950s,mfinancembeganmtomchangemtomammoremanalytical,mdecision-oriented mapproach.

Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's:
Rememberm AACS
B: mReflectivemThinking

Accessibility: Keyboard mNavigation

7) Recently,mthememphasismof mfinancialmmanagement mhasmbeenmonmthemrelationshipmbetweenmriskma
nd mreturn.

Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: m 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,m accounting,mand mamnumbermof mother
mareas.;m01-

03mThemrelationshipmof mriskmtomreturnmismamcentralmfocusmof mfinance.mBloom's:m Understand
AACSB:m AnalyticalmThinkingmAcce
ssibility:m m Keyboard mNavigation

8) Themfirst mNobelmPrizesmgivenmtomfinancemprofessorsmweremformtheirmcontributionsmtomcapi
talmstructuremtheorymand mportfoliomtheoriesmof mriskmand mreturn.

3
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.

, Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.

Bloom's: Remember




4
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.