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Test Bank for Foundations of Financial Management 17th Edition by Stanley Block, Geoffrey Hirt & Bartley Danielsen , ISBN: ‎ 9781260290813 |All Chapters Verified| Guide A+ $17.99   Add to cart

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Test Bank for Foundations of Financial Management 17th Edition by Stanley Block, Geoffrey Hirt & Bartley Danielsen , ISBN: ‎ 9781260290813 |All Chapters Verified| Guide A+

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  • Foundations Of Financial Management, 17e
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  • Foundations Of Financial Management, 17e

Test Bank for Foundations of Financial Management 17th Edition by Stanley Block, Geoffrey Hirt, Bartley Danielsen. PART 1 INTRODUCTION 1 The Goals and Activities of Financial Management PART 2 FINANCIAL ANALYSIS AND PLANNING 2 Review of Accounting 3 Financial Analysis 4 Financial Forecasting 5 Oper...

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  • June 11, 2024
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  • Foundations Of Financial Management, 17e
  • Foundations Of Financial Management, 17e
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TEST BANK
Test Bank for Foundations of Financial Management
17th Edition
KA
G
U
A



TEST BANK

,Stanley Block, Geoffrey Hirt & Bartley Danielsen: Foundations of
Financial Management
Chapter 1: The Goals and Activities of Financial Management


1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.

Answer: TRUE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
KA
Answer: FALSE
Difficulty: 1 Easy
Topic: Financial management decisions
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
G
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
U

3) Financial capital is composed of long-term plant and equipment, as well as other tangible
investments.
A

Answer: FALSE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

4) Real capital is composed of long-term plant and equipment.

Answer: TRUE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember

,AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.

Answer: TRUE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.

Answer: TRUE
KA
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
G
Accessibility: Keyboard Navigation

7) Recently, the emphasis of financial management has been on the relationship between risk and
U
return.

Answer: TRUE
A
Difficulty: 1 Easy
Topic: Introduction to corporate finance
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) The first Nobel Prizes given to finance professors were for their contributions to capital
structure theory and portfolio theories of risk and return.

Answer: TRUE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember

, AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

9) How investors handle risk is an important topic that usually only economists observe.

Answer: FALSE
Explanation: Behavioral finance is something that the finance industry puts heavy emphasis on.
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation

10) Mortgage-backed securities were devalued by accounting standards because of the high credit
ratings (AAA).
KA
Answer: FALSE
Explanation: These securities were devalued because borrowers defaulted on their loans and
didn't have the financial means to back up their loans in other ways.
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
G
and a number of other areas.
Bloom's: Remember
AACSB: Reflective Thinking
U
Accessibility: Keyboard Navigation

11) "Credit default swaps" are one of several tools that Congress and the President of the United
A
States have jointly developed to ease the financial crisis that began in 2008.

Answer: FALSE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
and a number of other areas.
Bloom's: Understand
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation

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