Test Bank for Foundations of Financial Management –
18th Edition by Block & Hirt | Verified Exam Questions
with Detailed Answers
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Foundations of Financial Management, 17e (Block)
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Chapter 1 The Goals and Activities of Financial Management
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1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
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Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
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Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
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and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
q q q q q q q q q q q q q
Answer: FALSE q q
Difficulty: 1 Easy q q
Topic: Financial management decisions q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
3) Financial capital is composed of long-term plant and equipment, as well as other tangible
q q q q q q q q q q q q q q
investments.
Answer: FALSE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
4) Real capital is composed of long-term plant and equipment.
q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,AACSB: Reflective Thinking q q q
Accessibility: Keyboard q q q
Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
q q q q q q q q q q q q q q
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
q q q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
q q q q q q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
7) Recently, the emphasis of financial management has been on the relationship between risk and
q q q q q q q q q q q q q q
return.
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
q q q q q q q q q q q q q q q q q q q q
Bloom's: Understand q
AACSB: Analytical Thinking q q q
Accessibility: Keyboard q q q
Navigation
8) The first Nobel Prizes given to finance professors were for their contributions to capital
q q q q q q q q q q q q q q
structure theory and portfolio theories of risk and return.
q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, and a number of other areas.
q q q q q
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
18th Edition by Block & Hirt | Verified Exam Questions
with Detailed Answers
1
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,Foundations of Financial Management, 17e (Block)
q q q q q
Chapter 1 The Goals and Activities of Financial Management
q q q q q q q
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
q q q q q q q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
q q q q q q q q q q q q q
Answer: FALSE q q
Difficulty: 1 Easy q q
Topic: Financial management decisions q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
3) Financial capital is composed of long-term plant and equipment, as well as other tangible
q q q q q q q q q q q q q q
investments.
Answer: FALSE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
4) Real capital is composed of long-term plant and equipment.
q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember
2
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
,AACSB: Reflective Thinking q q q
Accessibility: Keyboard q q q
Navigation
5) During the 1930s, financial practice revolved around such topics as the preservation of capital,
q q q q q q q q q q q q q q
maintenance of liquidity, the reorganization of financially troubled corporations, and bankruptcy.
q q q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
6) In the mid 1950s, finance began to change to a more analytical, decision-oriented approach.
q q q q q q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.
q q q q q
Bloom's: Remember q
AACSB: Reflective Thinking q q
Accessibility: Keyboard Navigation q
7) Recently, the emphasis of financial management has been on the relationship between risk and
q q q q q q q q q q q q q q
return.
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
and a number of other areas.; 01-03 The relationship of risk to return is a central focus of finance.
q q q q q q q q q q q q q q q q q q q q
Bloom's: Understand q
AACSB: Analytical Thinking q q q
Accessibility: Keyboard q q q
Navigation
8) The first Nobel Prizes given to finance professors were for their contributions to capital
q q q q q q q q q q q q q q
structure theory and portfolio theories of risk and return.
q q q q q q q q
Answer: TRUE q q
Difficulty: 1 Easy q q
Topic: Introduction to corporate finance
q q q q q
Learning Objective: 01-01 The field of finance integrates concepts from economics, accounting,
q q q q q q q q q q q
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
, and a number of other areas.
q q q q q
Bloom's: Remember
4
Copyright © 2019 McGraw-Hill Education. All rights reserved.
No reproduction or distribution without the prior written consent of McGraw-Hill Education.
