Foundationsm ofm Financialm Management,m 17em (Block)
Chapterm1 ThemGoalsmandmActivitiesmof mFinancialmManagement
1) Asmfinancememerged masmamnew mfield,mmuchmemphasismwasmplaced monmmergersmand macquisitions.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
2) Inflationmismassumed mtombemamtemporarymproblemmthat mdoesmnot maffect mfinancialmdecisions.
Answer:m FALSEmDi
fficulty:m1mEasy
Topic: Financialmmanagement mdecisions
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
3) Financialmcapitalmismcomposed mof mlong-
termmplant mand mequipment,masmwellmasmothermtangibleminvestments.
Answer:m FALSEmDi
fficulty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
4) Realmcapitalmismcomposed mof mlong-termmplant mand mequipment.
Answer:m TRUEmDiff
1
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
,iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's: Remember
2
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
,AACSB:m ReflectivemThinking mAcce
ssibility:m m Keyboard mNavigation
5) Duringmthem1930s,mfinancialmpracticemrevolved maround msuchmtopicsmasmthempreservationmof mcapit
al,mmaintenancemof mliquidity,mthemreorganizationmof mfinanciallymtroubled mcorporations,mand mbankru
ptcy.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
6) Inmthemmid m1950s,mfinancembeganmtomchangemtomammoremanalytical,mdecision-oriented mapproach.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
7) Recently,mthememphasismof mfinancialmmanagement mhasmbeenmonmthemrelationshipmbetweenmriskma
nd mreturn.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: m 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,m accounting,mand mamnumbermof mother
mareas.;m01-
03mThemrelationshipmof mriskmtomreturnmismamcentralmfocusmof mfinance.mBloom's:m Understand
AACSB:m AnalyticalmThinkingmAcce
ssibility:m m Keyboard mNavigation
8) Themfirst mNobelmPrizesmgivenmtomfinancemprofessorsmweremformtheirmcontributionsmtomcapi
talmstructuremtheorymand mportfoliomtheoriesmof mriskmand mreturn.
3
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
, Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's: Remember
4
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
Chapterm1 ThemGoalsmandmActivitiesmof mFinancialmManagement
1) Asmfinancememerged masmamnew mfield,mmuchmemphasismwasmplaced monmmergersmand macquisitions.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
2) Inflationmismassumed mtombemamtemporarymproblemmthat mdoesmnot maffect mfinancialmdecisions.
Answer:m FALSEmDi
fficulty:m1mEasy
Topic: Financialmmanagement mdecisions
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
3) Financialmcapitalmismcomposed mof mlong-
termmplant mand mequipment,masmwellmasmothermtangibleminvestments.
Answer:m FALSEmDi
fficulty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
4) Realmcapitalmismcomposed mof mlong-termmplant mand mequipment.
Answer:m TRUEmDiff
1
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
,iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's: Remember
2
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
,AACSB:m ReflectivemThinking mAcce
ssibility:m m Keyboard mNavigation
5) Duringmthem1930s,mfinancialmpracticemrevolved maround msuchmtopicsmasmthempreservationmof mcapit
al,mmaintenancemof mliquidity,mthemreorganizationmof mfinanciallymtroubled mcorporations,mand mbankru
ptcy.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
6) Inmthemmid m1950s,mfinancembeganmtomchangemtomammoremanalytical,mdecision-oriented mapproach.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's:
Rememberm AACS
B: mReflectivemThinking
Accessibility: Keyboard mNavigation
7) Recently,mthememphasismof mfinancialmmanagement mhasmbeenmonmthemrelationshipmbetweenmriskma
nd mreturn.
Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: m 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,m accounting,mand mamnumbermof mother
mareas.;m01-
03mThemrelationshipmof mriskmtomreturnmismamcentralmfocusmof mfinance.mBloom's:m Understand
AACSB:m AnalyticalmThinkingmAcce
ssibility:m m Keyboard mNavigation
8) Themfirst mNobelmPrizesmgivenmtomfinancemprofessorsmweremformtheirmcontributionsmtomcapi
talmstructuremtheorymand mportfoliomtheoriesmof mriskmand mreturn.
3
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
, Answer:m TRUEmDiff
iculty:m1mEasy
Topic:m m Introductionmtomcorporatemfinance
LearningmObjective: 01-
01mThemfield mof mfinancemintegratesmconceptsmfrommeconomics,maccounting,mand mamnumbermof mother
mareas.
Bloom's: Remember
4
Copyright m©m2019 mMcGraw-HillmEducation.mAllmrightsmreserved.
No mreproduction mormdistribution mwithout mthempriormwritten mconsent mof mMcGraw-
HillmEducation.
