1 Test
,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
Foundations of Financial Management, 17e (Block)
Chapter 1 The Goals and Activities of Financial Management
1) As financeemerged asa new field, muchemphasiswas placed onmergersand acquisitions.
j
Answer: TRUE
Difficulty:1Easy
Topic: Introductionto corporate finance
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
2) Inflation is assumed to beatemporaryproblemthat does not affect financialdecisions.
j j
Answer: FALSE
Difficulty:1 Easy
Topic: Financialmanagement decisions
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
j j j
investments.
Answer: FALSE
Difficulty:1 Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
4) Realcapitaliscomposed oflong-termplant and equipment.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
2
,AACSB: Reflective Thinking
Accessibility: Keyboard
Navigation
5) Duringthe1930s, financialpracticerevolved around suchtopicsasthepreservation ofcapital,
j j
maintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
j
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
7) Recently, theemphasisoffinancialmanagement has beenonthe relationship betweenriskand
j j
return.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard
Navigation
8) Thefirst NobelPrizesgiven to financeprofessorswerefortheircontributionstocapital
j j
structure theoryand portfolio theories of risk and return.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
3
, a number of other areas.
Bloom's: Remember
4
,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
Foundations of Financial Management, 17e (Block)
Chapter 1 The Goals and Activities of Financial Management
1) As financeemerged asa new field, muchemphasiswas placed onmergersand acquisitions.
j
Answer: TRUE
Difficulty:1Easy
Topic: Introductionto corporate finance
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
2) Inflation is assumed to beatemporaryproblemthat does not affect financialdecisions.
j j
Answer: FALSE
Difficulty:1 Easy
Topic: Financialmanagement decisions
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
j j j
investments.
Answer: FALSE
Difficulty:1 Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
4) Realcapitaliscomposed oflong-termplant and equipment.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
2
,AACSB: Reflective Thinking
Accessibility: Keyboard
Navigation
5) Duringthe1930s, financialpracticerevolved around suchtopicsasthepreservation ofcapital,
j j
maintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
j
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
a number of other areas.
Bloom's: Remember
AACSB: ReflectiveThinking
Accessibility: KeyboardNavigation
7) Recently, theemphasisoffinancialmanagement has beenonthe relationship betweenriskand
j j
return.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard
Navigation
8) Thefirst NobelPrizesgiven to financeprofessorswerefortheircontributionstocapital
j j
structure theoryand portfolio theories of risk and return.
Answer: TRUE
Difficulty:1Easy
Topic: Introduction to corporate finance
j
Learning Objective: 01-01Thefieldoffinanceintegratesconceptsfromeconomics,accounting, and
j
3
, a number of other areas.
Bloom's: Remember
4
