TEST BANK
Fundamentals of Financial Management
Eugene F. Brigham and Joel F. Houston
ST
──────────────────────────────────────────────────
12th Edition
UV
IA
?_
AP
PR
OV
ED
? ?
, TABLE OF CONTENTS
Test Bank: Fundamentals of Financial Management, 12th Edition
By Eugene Brigham, Joel Houston
ST
Chapter Title
UV
Part 1 Introduction to Financial Management (Chapters 1-2)
Chapter 1 An Overview of Financial Management
IA
Chapter 2 Financial Markets and Institutions
Part 2 Fundamental Concepts in Financial Management (Chapters 3-5)
?_
Chapter 3 Financial Statements, Cash Flow, and Taxes
Chapter 4 Analysis of Financial Statements
AP
Chapter 5 Time Value of Money
Part 3 Financial Assets (Chapters 6-9)
PR
Chapter 6 Interest Rates
Chapter 7 Bonds and Their Valuation
OV
Chapter 8 Risk and Rates of Return
Chapter 9 Stocks and Their Valuation
Part 4 Investing in Long-Term Assets: Capital Budgeting (Chapters 10-13)
ED
Chapter 10 The Cost of Capital
Chapter 11 The Basics of Capital Budgeting
??
Chapter 12 Cash Flow Estimation and Risk Analysis
Chapter 13 Real Options and Other Topics in Capital Budgeting
1
, Chapter Title
Part 5 Capital Structure and Dividend Policy (Chapters 14-15)
Chapter 14 Capital Structure and Leverage
ST
Chapter 15 Distributions to Shareholders: Dividends and Share Repurchases
UV
Part 6 Working Capital Management, Financial Forecasting, and
Multinational Financial Management (Chapters 16-18)
Chapter 16 Working Capital Management
IA
Chapter 17 Financial Planning and Forecasting
Chapter 18 Multinational Financial Management
?_
Part 7 Special Topics in Financial Management (Chapter 19)
Chapter 19 Fintech in Financial Markets
AP
PR
OV
ED
??
2
, Name: Class: Date:
Chapter 1 - 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.
ST
Multiple Choice: True/False
1. In most corporations, the CFO ranks under the CEO.
UV
a. True
b. False
ANSWER: True
IA
2. The Chairman of the Board must also be the CEO.
a. True
b. False
?_
ANSWER: False
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
AP
authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but they 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
PR
b. False
ANSWER: True
4. Partnerships and proprietorships generally have a tax advantage over corporations.
OV
a. True
b. False
ANSWER: True
ED
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.
a. True
b. False
??
ANSWER: False
6. An advantage of the corporate form of organization is that corporations are generally less highly regulated than
proprietorships and partnerships.
a. True
b. False
ANSWER: False
Fundamentals of Financial Management
Eugene F. Brigham and Joel F. Houston
ST
──────────────────────────────────────────────────
12th Edition
UV
IA
?_
AP
PR
OV
ED
? ?
, TABLE OF CONTENTS
Test Bank: Fundamentals of Financial Management, 12th Edition
By Eugene Brigham, Joel Houston
ST
Chapter Title
UV
Part 1 Introduction to Financial Management (Chapters 1-2)
Chapter 1 An Overview of Financial Management
IA
Chapter 2 Financial Markets and Institutions
Part 2 Fundamental Concepts in Financial Management (Chapters 3-5)
?_
Chapter 3 Financial Statements, Cash Flow, and Taxes
Chapter 4 Analysis of Financial Statements
AP
Chapter 5 Time Value of Money
Part 3 Financial Assets (Chapters 6-9)
PR
Chapter 6 Interest Rates
Chapter 7 Bonds and Their Valuation
OV
Chapter 8 Risk and Rates of Return
Chapter 9 Stocks and Their Valuation
Part 4 Investing in Long-Term Assets: Capital Budgeting (Chapters 10-13)
ED
Chapter 10 The Cost of Capital
Chapter 11 The Basics of Capital Budgeting
??
Chapter 12 Cash Flow Estimation and Risk Analysis
Chapter 13 Real Options and Other Topics in Capital Budgeting
1
, Chapter Title
Part 5 Capital Structure and Dividend Policy (Chapters 14-15)
Chapter 14 Capital Structure and Leverage
ST
Chapter 15 Distributions to Shareholders: Dividends and Share Repurchases
UV
Part 6 Working Capital Management, Financial Forecasting, and
Multinational Financial Management (Chapters 16-18)
Chapter 16 Working Capital Management
IA
Chapter 17 Financial Planning and Forecasting
Chapter 18 Multinational Financial Management
?_
Part 7 Special Topics in Financial Management (Chapter 19)
Chapter 19 Fintech in Financial Markets
AP
PR
OV
ED
??
2
, Name: Class: Date:
Chapter 1 - 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.
ST
Multiple Choice: True/False
1. In most corporations, the CFO ranks under the CEO.
UV
a. True
b. False
ANSWER: True
IA
2. The Chairman of the Board must also be the CEO.
a. True
b. False
?_
ANSWER: False
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
AP
authority to remove the CEO under certain conditions. The CEO, however, cannot remove the board, but they 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
PR
b. False
ANSWER: True
4. Partnerships and proprietorships generally have a tax advantage over corporations.
OV
a. True
b. False
ANSWER: True
ED
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.
a. True
b. False
??
ANSWER: False
6. An advantage of the corporate form of organization is that corporations are generally less highly regulated than
proprietorships and partnerships.
a. True
b. False
ANSWER: False
