Finance: Stock Market and Learning Objective

Chapter 001 The Goals and Functions of Financial Management

True / False Questions
1. As finance emerged as a new field, much emphasis was placed on mergers and acquisitions. TRUE

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

2. Inflation is assumed to be a temporary problem that does not affect financial decisions.
FALSE

Bloom 's: Understanding
Difficulty: Easy
Learning Objective: 1

3. Financial Capital is composed of long-term plant and equipment, as well as other tangible investments. FALSE

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

4. Real Capital is composed of long-term plant and equipment.
TRUE

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

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Chapter 001 The Goals and Functions of Financial Management

5. During the 1930s, financial practice revolved around such topics as the preservation of capital, maintenance of liquidity, reorganization of financially troubled corporations and bankruptcy. TRUE

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

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

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

7. Recently, the emphasis of financial management has been on the relationship between risk and return.
TRUE

Bloom 's: Understanding
Difficulty: Medium
Learning Objective: 1
Learning Objective: 3

8. The first Nobel Prizes given to finance professors were for their contributions to capital structure theory and portfolio theories of risk and return.
TRUE

Bloom 's: Knowledge
Difficulty: Easy
Learning Objective: 1

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Chapter 001 The Goals and Functions of Financial Management

9. The Internet impacts e-commerce by creating a mechanism for improved communications between a business, its customers, and its suppliers.
TRUE

Bloom 's: Understanding
Difficulty: Easy
Learning Objective: 1

10. The Internet has