,
,Foundations of Financial Management, 18e (Block)
c+ c+ c+ c+ c+
Chapter 1 The Goals and Activities of Financial Management
c+ c+ c+ c+ c+ c+ c+
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: TRUE Dif c + c+
ficulty: 1 Easy c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: FALSE D c + c+
ifficulty: 1 Easy c+ c+
Topic: Financial management decisions c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
3) Financial capital is composed of long-
c+ c+ c+ c+ c+
term plant and equipment, as well as other tangible investments.
c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: FALSE D c + c+
ifficulty: 1 Easy c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
4) Real capital is composed of long-term plant and equipment.
c+ c+ c+ c+ c+ c+ c+ c+
Answer: TRUE Dif c + c+
, ficulty: 1 Easy
c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01-
c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's: Remember
,Foundations of Financial Management, 18e (Block)
c+ c+ c+ c+ c+
Chapter 1 The Goals and Activities of Financial Management
c+ c+ c+ c+ c+ c+ c+
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: TRUE Dif c + c+
ficulty: 1 Easy c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: FALSE D c + c+
ifficulty: 1 Easy c+ c+
Topic: Financial management decisions c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
3) Financial capital is composed of long-
c+ c+ c+ c+ c+
term plant and equipment, as well as other tangible investments.
c+ c+ c+ c+ c+ c+ c+ c+ c+
Answer: FALSE D c + c+
ifficulty: 1 Easy c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01- c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's:
Remember AACS c +
B: Reflective Thinking +
c c+
Accessibility: Keyboard Navigation c+
4) Real capital is composed of long-term plant and equipment.
c+ c+ c+ c+ c+ c+ c+ c+
Answer: TRUE Dif c + c+
, ficulty: 1 Easy
c+ c+
Topic: Introduction to corporate finance
c + c + c+ c+ c+
Learning Objective: 01-
c+
01 The field of finance integrates concepts from economics, accounting, and a number of other
c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+ c+
areas.
Bloom's: Remember
