1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
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No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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,Foundations of Financial Management, 17e (Block) zl zl zl zl zl
Chapter 1 The Goals and Activities of Financial Management
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1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
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Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
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Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
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Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
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Answer: FALSE z l z
Difficulty: 1 Easy
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Topic: Financial management decisions zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
3) Financial capital is composed of long- zl zl zl zl zl
term plant and equipment, as well as other tangible investments.
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Answer: FALSE z l z
Difficulty: 1 Easy
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Topic: Introduction to corporate finance
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Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
4) Real capital is composed of long-term plant and equipment.
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Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
,01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
, AACSB: Reflective Thinking Accesszl zl zl
ibility: Keyboard Navigation
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5) During the 1930s, financial practice revolved around such topics as the preservation of capital, ma
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intenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
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Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
7) Recently, the emphasis of financial management has been on the relationship between risk and ret
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urn.
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
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Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other area
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s.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accesszl zl zl
ibility: Keyboard Navigation
z l zl
8) The first Nobel Prizes given to finance professors were for their contributions to capital str
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ucture theory and portfolio theories of risk and return.
zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
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Learning Objective: 01- zl z l
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
Copyright © 2019 McGraw-Hill Education. All rights reserved.
zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
,Foundations of Financial Management, 17e (Block) zl zl zl zl zl
Chapter 1 The Goals and Activities of Financial Management
zl zl zl zl zl zl zl
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: FALSE z l z
Difficulty: 1 Easy
l zl zl
Topic: Financial management decisions zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
3) Financial capital is composed of long- zl zl zl zl zl
term plant and equipment, as well as other tangible investments.
zl zl zl zl zl zl zl zl zl
Answer: FALSE z l z
Difficulty: 1 Easy
l zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
4) Real capital is composed of long-term plant and equipment.
zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
,01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's: Remember
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
zl zl zl zl zl zl zl zl zl zl zl
, AACSB: Reflective Thinking Accesszl zl zl
ibility: Keyboard Navigation
z l z l zl
5) During the 1930s, financial practice revolved around such topics as the preservation of capital, ma
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
intenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
zl zl zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
zl zl zl zl zl zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other areas.
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
Bloom's:
Remember AACSB zl
: Reflective Thinking zl zl
Accessibility: Keyboard Navigation zl
7) Recently, the emphasis of financial management has been on the relationship between risk and ret
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
urn.
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
01 The field of finance integrates concepts from economics, accounting, and a number of other area
zl zl zl zl zl zl zl zl zl zl zl zl zl zl zl
s.; 01-03 The relationship of risk to return is a central focus of finance. Bloom's: Understand
zl zl zl zl zl zl zl zl zl zl zl zl zl zl z l
AACSB: Analytical Thinking Accesszl zl zl
ibility: Keyboard Navigation
z l zl
8) The first Nobel Prizes given to finance professors were for their contributions to capital str
zl zl zl zl zl zl zl zl zl zl zl zl zl zl
ucture theory and portfolio theories of risk and return.
zl zl zl zl zl zl zl zl
Answer: TRUE z l zl
Difficulty: 1 Easy zl zl
Topic: Introduction to corporate finance
z l z l zl zl zl
Learning Objective: 01- zl z l
4
Copyright © 2019 McGraw-Hill Education. All rights reserved. zl zl zl zl zl zl zl
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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