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Fundamentals of Corporate Finance, 5th Edition by Robert , David , Bates & Gillan. (All Chapters 1-21) | TEST BANK CA$42.87   Add to cart
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Fundamentals of Corporate Finance, 5th Edition by Robert , David , Bates & Gillan. (All Chapters 1-21) | TEST BANK

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TEST BANK for Fundamentals of Corporate Finance, Enhanced eText 5th Edition Robert Parrino, David Kidwell, Bates & Gillan. ISBN 5384, ISBN-13 978-8 -TABLE OF CONTENTS: Chapter 1 T he Financial Manager and the Firm Chapter 2 The Financial System and the Level of Interest Rates Chapter 3 Financial St...

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  • September 6, 2023
  • 852
  • 2023/2024
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  • isbn 9781119795384
  • isbn 13 978 1119795438
  • test bank for fundamentals of corporate finance
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  • fundamentals of corporate finance

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  • Test Bank For Fundamentals Of Corporate Finance 5th Edition By Parrino, Consists Of 21 Complete Chapters, ISBN: 978-1119795438
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,Fundamentals of Corporate Finance, 5e (Parrino)
Chapter 1 The Financial Manager and the Firm

1) The financial manager is responsible for making decisions that are in the best interests of the
firm's owners.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives

2) A patent is a productive asset for a technology-based firm.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

3) Intangible assets generate most of a manufacturing firm's cash flows.
Answer: FALSE
Diff: 2
Learning Objective: LO 1
Bloomcode: Application
AACSB: Analytic
IMA: Corporate Finance
AICPA: Process and Resource Management Perspectives

4) The most fundamental way a business can grow in size is by reinvesting cash flows or
earnings.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives




1

,5) A firm that goes bankrupt will always be liquidated.
Answer: FALSE
Diff: 2
Learning Objective: LO 1
Bloomcode: Application
AACSB: Analytic
IMA: Corporate Finance
AICPA: Resource Management

6) Capital assets are generally short term in nature.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Corporate Finance
AICPA: Process and Resource Management Perspectives

7) A good capital budgeting or investment decision is one in which the benefits are worth more
to the firm than the cost of the project.
Answer: TRUE
Explanation: Regardless of the project, a good investment is one in which the benefits are worth
more to the firm than the costs of the asset.
Diff: 2
Learning Objective: LO 1
Bloomcode: Analysis
AACSB: Analytic
IMA: Budget Preparation
AICPA: Resource Management

8) Investment decisions determine how firms raise capital to pay for their investments.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Investment Decisions
AICPA: Strategic/Critical Thinking

9) Net working capital is the dollar difference between a firm's total current assets and total
liabilities.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Budget Preparation
AICPA: Process and Resource Management Perspectives
2

, 10) A sole proprietorship is a business where ownership interest can be transferred to someone
else.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

11) One of the disadvantages of a general partnership is the double taxation of profits.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

12) Unlimited liability means that the owner of a firm is responsible for paying all the bills of the
firm in the event of a bankruptcy.
Answer: TRUE
Diff: 2
Learning Objective: LO 2
Bloomcode: Application
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

13) The process of transferring ownership of a sole proprietorship is relatively easy compared to
a public corporation.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives

14) General partners in a business have limited liability with regard to money owed to creditors.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
3

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