FoundationsmofmFinancialmManagement,m17em(Block)
Chapterm1 ThemGoalsmandmActivitiesmofmFinancialmManagement
1) Asmfinancememergedmasmamnewmfield,mmuchmemphasismwasmplacedmonmmergersmandm
acquisitions.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
2) Inflationmismassumedmtombemamtemporarymproblemmthatmdoesmnotmaffectmfinancialmdeci
sions.
Answer:m FALSEm
Difficulty:m1mEasy
Topic: Financialmmanagementmdecisions
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
3) Financialmcapitalmismcomposedmofmlong-
termmplantmandmequipment,masmwellmasmothermtangibleminvestments.
Answer:m FALSEm
Difficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
1
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
,B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
4) Realmcapitalmismcomposedmofmlong-termmplantmandmequipment.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's: Remember
2
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
,AACSB:m ReflectivemThinkingmA
ccessibility:m mKeyboardmNavigati
on
5) Duringmthem1930s,mfinancialmpracticemrevolvedmaroundmsuchmtopicsmasmthempreserva
tionmofmcapital,mmaintenancemofmliquidity,mthemreorganizationmofmfinanciallymtroubledm
corporations,mandmbankruptcy.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
6) Inmthemmidm1950s,mfinancembeganmtomchangemtomammoremanalytical,mdecision-
orientedmapproach.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
7) Recently,mthememphasismofmfinancialmmanagementmhasmbeenmonmthemrelationshipmbe
tweenmriskmandmreturn.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective:m 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.;m01-
03mThemrelationshipmofmriskmtomreturnmismamcentralmfocusmofmfinance.mBloom's:m Un
3
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
, derstand
AACSB:m AnalyticalmThinkingmA
ccessibility:m mKeyboardmNavigati
on
8) ThemfirstmNobelmPrizesmgivenmtomfinancemprofessorsmweremformtheirmcontribu
tionsmtomcapitalmstructuremtheorymandmportfoliomtheoriesmofmriskmandmreturn.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's: Remember
4
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
Chapterm1 ThemGoalsmandmActivitiesmofmFinancialmManagement
1) Asmfinancememergedmasmamnewmfield,mmuchmemphasismwasmplacedmonmmergersmandm
acquisitions.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
2) Inflationmismassumedmtombemamtemporarymproblemmthatmdoesmnotmaffectmfinancialmdeci
sions.
Answer:m FALSEm
Difficulty:m1mEasy
Topic: Financialmmanagementmdecisions
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
3) Financialmcapitalmismcomposedmofmlong-
termmplantmandmequipment,masmwellmasmothermtangibleminvestments.
Answer:m FALSEm
Difficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
1
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
,B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
4) Realmcapitalmismcomposedmofmlong-termmplantmandmequipment.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's: Remember
2
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
,AACSB:m ReflectivemThinkingmA
ccessibility:m mKeyboardmNavigati
on
5) Duringmthem1930s,mfinancialmpracticemrevolvedmaroundmsuchmtopicsmasmthempreserva
tionmofmcapital,mmaintenancemofmliquidity,mthemreorganizationmofmfinanciallymtroubledm
corporations,mandmbankruptcy.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
6) Inmthemmidm1950s,mfinancembeganmtomchangemtomammoremanalytical,mdecision-
orientedmapproach.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's:
Rememberm AACS
B:
mReflectivemThinki
ng
Accessibility: KeyboardmNavigation
7) Recently,mthememphasismofmfinancialmmanagementmhasmbeenmonmthemrelationshipmbe
tweenmriskmandmreturn.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective:m 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.;m01-
03mThemrelationshipmofmriskmtomreturnmismamcentralmfocusmofmfinance.mBloom's:m Un
3
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.
, derstand
AACSB:m AnalyticalmThinkingmA
ccessibility:m mKeyboardmNavigati
on
8) ThemfirstmNobelmPrizesmgivenmtomfinancemprofessorsmweremformtheirmcontribu
tionsmtomcapitalmstructuremtheorymandmportfoliomtheoriesmofmriskmandmreturn.
Answer:m TRUEmD
ifficulty:m1mEasy
Topic:mmIntroductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfieldmofmfinancemintegratesmconceptsmfrommeconomics,maccounting,mandmamnu
mbermofmothermareas.
Bloom's: Remember
4
Copyrightm©m2019mMcGraw-HillmEducation.mAllmrightsmreserved.
NomreproductionmormdistributionmwithoutmthempriormwrittenmconsentmofmMcGraw-
HillmEducation.