Foundations of Financial Management 17th edition by Stanley Block Test Bank |ISBN: 9781260290813| Guide A+

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TEST BANK
Test Bank for Foundations of Financial Management

Stanley B. Block; Geoffrey A. Hirt; Bartley Danielsen

17th Edition
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Block: Foundations of Financial Management, 17th Edition Test Bank


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,
SO
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.
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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.
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Bloom's: Remember
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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3) Financial capital is composed of long-term plant and equipment, as well as other tangible
investments.
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Answer: FALSE
Difficulty: 1 Easy
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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,

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and a number of other areas.
Bloom's: Remember

SO
LU
TI
O
N
S

, @PROFDOCDIGITALLIBRARIES




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
SO

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

Answer: TRUE
Difficulty: 1 Easy
LU
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
TI

7) Recently, the emphasis of financial management has been on the relationship between risk and
return.
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Answer: TRUE
Difficulty: 1 Easy
Topic: Introduction to corporate finance
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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
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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