TEST BANK for Fundamentals of Financial
Management, 16th edition by Eugene F.
Brigham and Joel F. Houston
All Chapters Included 1-21 with All Appendixes
& Rationales for Exam Preparations|
GUARANTEED A+ PASS
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, Chapter 01: An Overview of Financial Management
Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used
in multiple-choice questions.
Multiple Choice: True/False
1. In most corporations, the CFO ranks under the CEO.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
PREFACE NAME: T/F
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
2. The Chairman of the Board must also be the CEO.
a. True
b. False
ACCURATE ANSWER> False
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POINTS: 1
DIFFICULTY: EASY
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~2~
Do
c
,REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest
ranking individual. The CEO generally works under the board and its chairman, and the board generally has the
authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she
can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person
to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad
to vest both offices in the same person.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
Ar
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
ch
~3~
Do
c
, LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
4. Partnerships and proprietorships generally have a tax advantage over corporations.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-3 Forms of Business Organization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Forms of organization
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal
liabilities in the event of bankruptcy than are investors in a typical partnership.
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a. True
b. False
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Management, 16th edition by Eugene F.
Brigham and Joel F. Houston
All Chapters Included 1-21 with All Appendixes
& Rationales for Exam Preparations|
GUARANTEED A+ PASS
Ar
ch
~1~
Do
c
, Chapter 01: An Overview of Financial Management
Note that there is an overlap between the T/F and multiple-choice questions, as some of the T/F statements are used
in multiple-choice questions.
Multiple Choice: True/False
1. In most corporations, the CFO ranks under the CEO.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
PREFACE NAME: T/F
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
2. The Chairman of the Board must also be the CEO.
a. True
b. False
ACCURATE ANSWER> False
Ar
POINTS: 1
DIFFICULTY: EASY
ch
~2~
Do
c
,REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
3. The board of directors is the highest ranking body in a corporation, and the chairman of the board is the highest
ranking individual. The CEO generally works under the board and its chairman, and the board generally has the
authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but he or she
can endeavor to have the board voted out and a new board voted in should a conflict arise. It is possible for a person
to simultaneously serve as CEO and chairman of the board, though many corporate control experts believe it is bad
to vest both offices in the same person.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-1 What Is Finance?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.01 - What Is Finance?
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
Ar
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
ch
~3~
Do
c
, LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Role of finance
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
4. Partnerships and proprietorships generally have a tax advantage over corporations.
a. True
b. False
ACCURATE ANSWER> True
POINTS: 1
DIFFICULTY: EASY
REFERENCES: 1-3 Forms of Business Organization
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: FOFM.BRIG.17.01.03 - Forms of Business Organization
NATIONAL STANDARDS: United States - BUSPROG.FOFM.BRIG.17.06 - Reflective thinking
STATE STANDARDS: United States - OH - DISC.FOFM.BRIG.17.06 - Finance function
LOCAL STANDARDS: United States - OH - Default City - Students will understand and be - Students will
understand and be able to articulate the goals of the firm, the role of the finance function in the enterprise's
organization, and as an analyst using public information.
TOPICS: Forms of organization
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 9/21/2017 3:15 PM
DATE MODIFIED: 9/21/2017 3:15 PM
5. A disadvantage of the corporate form of organization is that corporate stockholders are more exposed to personal
liabilities in the event of bankruptcy than are investors in a typical partnership.
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a. True
b. False
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~4~
Do
c
