1 Test
,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
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Foundations of Financial Management, 17e (Block)
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Chapter 1 The Goals and Activities of Financial Management
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1) As financeemerged asa new field, muchemphasiswasplaced onmergersand acquisitions.
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Answer: TRUE
Difficulty:1Easy
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Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
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da number of other areas.
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Bloom's: Remember
AACSB: ReflectiveThinking
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Accessibility: KeyboardNavigation
2) Inflationisassumedto beatemporaryproblemthatdoesnot affect financialdecisions.
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Answer: FALSE
Difficulty:1Easy
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Topic: Financialmanagementdecisions
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
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dinvestments.
Answer: FALSE
Difficulty:1Easy
d d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
4) Realcapitaliscomposed oflong-termplant and equipment. d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
2
,AACSB: Reflective Thinking
Accessibility:
d Keyboard
Navigation
d
5) Duringthe1930s, financialpracticerevolved aroundsuchtopicsasthepreservationofcapital,
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maintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.
d d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
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Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
7) Recently, theemphasisoffinancialmanagement hasbeenonthe relationship betweenriskand
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return.
d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
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and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
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Bloom's: Understand
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AACSB: Analytical Thinking
Accessibility:
d Keyboard
Navigation
d
8) Thefirst NobelPrizesgivento financeprofessorswerefortheircontributionstocapital
d j d
dstructure theoryand portfolio theories of risk and return.
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Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
Learning Objective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting,
d j d and
3
, anumber of other areas.
d d d
Bloom's: Remember
d
4
,Bank for Foundations of Financial Management by Block & Hirt | Complete Edition
d d d d d d d d d d d d
Foundations of Financial Management, 17e (Block)
d d d d d
Chapter 1 The Goals and Activities of Financial Management
d d d d d d d
1) As financeemerged asa new field, muchemphasiswasplaced onmergersand acquisitions.
d d d d d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
2) Inflationisassumedto beatemporaryproblemthatdoesnot affect financialdecisions.
d d d d d d
Answer: FALSE
Difficulty:1Easy
d d
Topic: Financialmanagementdecisions
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
3) Financialcapitaliscomposed oflong-termplant andequipment, aswellasothertangible
d j d d j
dinvestments.
Answer: FALSE
Difficulty:1Easy
d d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
4) Realcapitaliscomposed oflong-termplant and equipment. d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
2
,AACSB: Reflective Thinking
Accessibility:
d Keyboard
Navigation
d
5) Duringthe1930s, financialpracticerevolved aroundsuchtopicsasthepreservationofcapital,
d d
maintenanceofliquidity, thereorganizationoffinanciallytroubled corporations, andbankruptcy.
d d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
6) Inthe mid 1950s, financebeganto changeto amoreanalytical, decision-oriented approach.
d d d d d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
LearningObjective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting, and
d j d d
da number of other areas.
d d d d
Bloom's: Remember
AACSB: ReflectiveThinking
d
Accessibility: KeyboardNavigation
7) Recently, theemphasisoffinancialmanagement hasbeenonthe relationship betweenriskand
d d d d
return.
d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
d d d d d d d d d d d
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
d d d d d d d d d d d d d d d d d d d
Bloom's: Understand
d d
AACSB: Analytical Thinking
Accessibility:
d Keyboard
Navigation
d
8) Thefirst NobelPrizesgivento financeprofessorswerefortheircontributionstocapital
d j d
dstructure theoryand portfolio theories of risk and return.
d d d d d d d
Answer: TRUE
Difficulty:1Easy
d
Topic: Introductionto corporate finance d d
Learning Objective: 01-01Thefieldoffinance integratesconceptsfromeconomics,accounting,
d j d and
3
, anumber of other areas.
d d d
Bloom's: Remember
d
4
