Foundationsa2ofa2Financiala2Management,a217ea2(Block)
Chaptera21 Thea2Goalsa2anda2Activitiesa2ofa2Financiala2Management
1) Asa2financea2emergeda2asa2aa2newa2field,a2mucha2emphasisa2wasa2placeda2ona2mergersa2anda2acquis
itions.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
2) Inflationa2isa2assumeda2toa2bea2aa2temporarya2problema2thata2doesa2nota2affecta2financiala2decisions.
Answer:a 2 FALSEa2
Difficulty:a21a2Easy
Topic: Financiala2managementa2decisions
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
3) Financiala2capitala2isa2composeda2ofa2long-
terma2planta2anda2equipment,a2asa2wella2asa2othera2tangiblea2investments.
Answer:a 2 FALSEa2
Difficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
1
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
, a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
4) Reala2capitala2isa2composeda2ofa2long-terma2planta2anda2equipment.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's: Remember
2
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
,AACSB:a 2 Reflectivea2Thinkinga2Ac
cessibility:a 2 a 2 Keyboarda2Navigatio
n
5) Duringa2thea21930s,a2financiala2practicea2revolveda2arounda2sucha2topicsa2asa2thea2preservationa
2ofa2capital,a2maintenancea2ofa2liquidity,a2thea2reorganizationa2ofa2financiallya2troubleda2corporati
ons,a2anda2bankruptcy.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
6) Ina2thea2mida21950s,a2financea2begana2toa2changea2toa2aa2morea2analytical,a2decision-
orienteda2approach.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
7) Recently,a2thea2emphasisa2ofa2financiala2managementa2hasa2beena2ona2thea2relationshipa2betwee
na2riska2anda2return.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective:a 2 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.;a201-
03a2Thea2relationshipa2ofa2riska2toa2returna2isa2aa2centrala2focusa2ofa2finance.a2Bloom's:a 2 Underst
3
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
, and
AACSB:a 2 Analyticala2Thinkinga2Ac
cessibility:a 2 a 2 Keyboarda2Navigatio
n
8) Thea2firsta2Nobela2Prizesa2givena2toa2financea2professorsa2werea2fora2theira2contributions
a2toa2capitala2structurea2theorya2anda2portfolioa2theoriesa2ofa2riska2anda2return.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's: Remember
4
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
Chaptera21 Thea2Goalsa2anda2Activitiesa2ofa2Financiala2Management
1) Asa2financea2emergeda2asa2aa2newa2field,a2mucha2emphasisa2wasa2placeda2ona2mergersa2anda2acquis
itions.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
2) Inflationa2isa2assumeda2toa2bea2aa2temporarya2problema2thata2doesa2nota2affecta2financiala2decisions.
Answer:a 2 FALSEa2
Difficulty:a21a2Easy
Topic: Financiala2managementa2decisions
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
3) Financiala2capitala2isa2composeda2ofa2long-
terma2planta2anda2equipment,a2asa2wella2asa2othera2tangiblea2investments.
Answer:a 2 FALSEa2
Difficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
1
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
, a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
4) Reala2capitala2isa2composeda2ofa2long-terma2planta2anda2equipment.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's: Remember
2
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
,AACSB:a 2 Reflectivea2Thinkinga2Ac
cessibility:a 2 a 2 Keyboarda2Navigatio
n
5) Duringa2thea21930s,a2financiala2practicea2revolveda2arounda2sucha2topicsa2asa2thea2preservationa
2ofa2capital,a2maintenancea2ofa2liquidity,a2thea2reorganizationa2ofa2financiallya2troubleda2corporati
ons,a2anda2bankruptcy.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
6) Ina2thea2mida21950s,a2financea2begana2toa2changea2toa2aa2morea2analytical,a2decision-
orienteda2approach.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's:
Remembera 2 AACS
B:
a2Reflectivea2Thinkin
g
Accessibility: Keyboarda2Navigation
7) Recently,a2thea2emphasisa2ofa2financiala2managementa2hasa2beena2ona2thea2relationshipa2betwee
na2riska2anda2return.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective:a 2 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.;a201-
03a2Thea2relationshipa2ofa2riska2toa2returna2isa2aa2centrala2focusa2ofa2finance.a2Bloom's:a 2 Underst
3
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
, and
AACSB:a 2 Analyticala2Thinkinga2Ac
cessibility:a 2 a 2 Keyboarda2Navigatio
n
8) Thea2firsta2Nobela2Prizesa2givena2toa2financea2professorsa2werea2fora2theira2contributions
a2toa2capitala2structurea2theorya2anda2portfolioa2theoriesa2ofa2riska2anda2return.
Answer:a 2 TRUEa2D
ifficulty:a21a2Easy
Topic:a 2 a 2 Introductiona2toa2corporatea2finance
Learninga2Objective: 01-
01a2Thea2fielda2ofa2financea2integratesa2conceptsa2froma2economics,a2accounting,a2anda2aa2numbera
2ofa2othera2areas.
Bloom's: Remember
4
Copyrighta2©a22019a2McGraw-Hilla2Education.a2Alla2rightsa2reserved.
Noa2reproductiona2ora2distributiona2withouta2thea2priora2writtena2consenta2ofa2McGraw-
Hilla2Education.
