TEST BANK
DC
,FoundationsDCofDCFinance,DC10eDC(Keown/Martin/Petty)
ChapterDC1D C AnDCIntroductionDCtoDCtheDCFoundationsDCofDCFinancialDCManagement
LearningDCObjectiveDC1.1
1) FinancialDCmanagementDCdealsDCwithDCtheDCmaintenanceDCandDCcreationDCofDCeconomicDCvalueDC
orDCwealth.DCAnswer:D C TRUE
Diff:DC1 PageDCRef:DC3
Keywords:DCFinancialDCManagementDCLear
ningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
2) EachDCfinancialDCdecisionDCmadeDCbyDCaDCcorporateDCmanagerDCcanDCbeDCevaluatedDCbyDCitsDCdirectDCi
mpactDConDCtheDCcorporation'sDCstockDCprice.
Answer:DCFALSEDC
Diff:DC1
PageDCRef:D
4
C
Keywords:DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
DC AACSB:D C ReflectiveDCThink
ing
3) TheDCfundamentalDCgoalDCofDCaDCbusinessDCisDCtoDCmaximizeDCtheDCretainedDCearningsDCavailableDCtoDCtheD
Ccorporation'sDCshareholders.
Answer:DCFALSEDC
Diff:DC1
PageDCRef:D
3
C
Keywords:DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
DC AACSB:D C ReflectiveDCThink
ing
https://www.stuvia.com/user/angelinas
,4) ShareholderDCwealthDCmaximizationDCmeansDCmaximizingDCtheDCpriceDCofDCtheDCexistingDCcomm
onDCstock.DCAnswer:D C TRUE
Diff:DC1 PageDCRef:DC3
DCangelinas
https://www.stuvia.com/user/angelinas
, Keywords:DCShareholderDCWealth,DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
5) ItDCisDCimportantDCtoDCevaluateDCaDCcorporateDCmanager'sDCfinancialDCdecisionDCbyDCmeasuringDCtheDCeffectDCth
eDCdecision
shouldDChaveDConDCtheDCcorporation'sDCstockDCpriceDCifDCeverythingDCelseDCwereDCheldDCco
nstant.DCAnswer:D C TRUE
Diff:DC2 PageDCRef:DC4
Keywords:DCGoalDCofDCtheDCFirm,DCMaximizeDCShareholderDCWealthDC
LearningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
DCangelinas
https://www.stuvia.com/user/angelinas
DC
,FoundationsDCofDCFinance,DC10eDC(Keown/Martin/Petty)
ChapterDC1D C AnDCIntroductionDCtoDCtheDCFoundationsDCofDCFinancialDCManagement
LearningDCObjectiveDC1.1
1) FinancialDCmanagementDCdealsDCwithDCtheDCmaintenanceDCandDCcreationDCofDCeconomicDCvalueDC
orDCwealth.DCAnswer:D C TRUE
Diff:DC1 PageDCRef:DC3
Keywords:DCFinancialDCManagementDCLear
ningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
2) EachDCfinancialDCdecisionDCmadeDCbyDCaDCcorporateDCmanagerDCcanDCbeDCevaluatedDCbyDCitsDCdirectDCi
mpactDConDCtheDCcorporation'sDCstockDCprice.
Answer:DCFALSEDC
Diff:DC1
PageDCRef:D
4
C
Keywords:DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
DC AACSB:D C ReflectiveDCThink
ing
3) TheDCfundamentalDCgoalDCofDCaDCbusinessDCisDCtoDCmaximizeDCtheDCretainedDCearningsDCavailableDCtoDCtheD
Ccorporation'sDCshareholders.
Answer:DCFALSEDC
Diff:DC1
PageDCRef:D
3
C
Keywords:DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
DC AACSB:D C ReflectiveDCThink
ing
https://www.stuvia.com/user/angelinas
,4) ShareholderDCwealthDCmaximizationDCmeansDCmaximizingDCtheDCpriceDCofDCtheDCexistingDCcomm
onDCstock.DCAnswer:D C TRUE
Diff:DC1 PageDCRef:DC3
DCangelinas
https://www.stuvia.com/user/angelinas
, Keywords:DCShareholderDCWealth,DCGoalDCofDCtheDCFir
mDCLearningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
5) ItDCisDCimportantDCtoDCevaluateDCaDCcorporateDCmanager'sDCfinancialDCdecisionDCbyDCmeasuringDCtheDCeffectDCth
eDCdecision
shouldDChaveDConDCtheDCcorporation'sDCstockDCpriceDCifDCeverythingDCelseDCwereDCheldDCco
nstant.DCAnswer:D C TRUE
Diff:DC2 PageDCRef:DC4
Keywords:DCGoalDCofDCtheDCFirm,DCMaximizeDCShareholderDCWealthDC
LearningDCObj.:DCL.O.DC1.1
AACSB:D C ReflectiveDCThinking
DCangelinas
https://www.stuvia.com/user/angelinas