Fundamentals of Financial Management, 14E by Eugene F. Brigham/Joel F. Houston-|Test bank| Reviewed/Updated for 2021

The Test bank borrows from the elaborated text book fielding questions specially tailored to the text book topics to equip the student with what questions to expect in the quiz’s tests and exams With the same contemporary approach and dynamic examples that made previous editions so popular, FUNDAMENTALS OF FINANCIAL MANAGEMENT, 14e continues to provide students with a focused understanding of today's corporate finance and financial management. This market-leading text offers a unique balance of clear concepts, contemporary theory, and practical applications in order to help students understand the concepts and reasons behind corporate budgeting, financing, working capital decision making, forecasting, valuation, and Time Value of Money (TVM). Offering the most cutting-edge coverage available, the Fourteenth Edition includes discussions of the federal debt, the ongoing recovery of financial markets, and the European debt crisis. Numerous practical examples, Quick Questions, and Integrated Cases demonstrate theory in action. In most corporations, the CFO ranks under the CEO. a. True b. False (1-1) Role of finance F M Answer: b EASY 2. The Chairman of the Board must also be the CEO. a. True b. False (1-1) Role of finance F M Answer: a EASY 3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest ranking individual. The CEO generally works under the board and its chairman, and the board generally has the authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad to vest both offices in the same person. a. True b. False (1-3) Forms of organization F M Answer: a EASY 4. Partnerships and proprietorships generally have a tax advantage over corporations. a. True b. False (1-3) Forms of organization F M Answer: b EASY 5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal liabilities in the event of bankruptcy than are investors in a typical partnership. a. True b. False