Test Bank for Fundamentals of Corporate Finance, 4th Canadian Edition by Jonathan Berk
241 views 10 purchases
Course
Corporate Finance
Institution
Corporate Finance
Test Bank for Fundamentals of Corporate Finance 4ce 4th Canadian Edition by Jonathan Berk, David A. Stangeland.
ISBN-13: 0050
Full Chapters test bank included
Corporate Finance and the Financial Manager
Introduction to Financial Statement Analysis
The Valuation Principle: The Foundation ...
Chapter 1 Corporate Finance and the Financial Manager
1.1 Why Study Finance
1) The Valuation Principle shows how to make the costs and benefits of a decision comparable so that we can
evaluate them properly.
Answer: TRUE
Explanation:
Diff: 1 Type: TF
Skill: Conceptual
Objective: 1.1 Grasp the importance of financial information in both your personal and business lives
2) Which of the following best describes why the Valuation Principle is a key concept in making financial
decisions?
A) It shows how to assign monetary value to intangibles such as good health and well-being.
B) It allows fixed assets and liquid assets to be valued correctly.
C) It gives a good indication of the net worth of a person, item, or company and can be used to estimate any
changes in that net worth.
D) It shows how to make the costs and benefits of a decision comparable so that we can weigh them
properly.
E) It allows us to produce accurate financial statements.
Answer: D
Explanation: A)
B)
C)
D)
E)
Diff: 1 Type: MC
Skill: Conceptual
Objective: 1.1 Grasp the importance of financial information in both your personal and business lives
3) Both personal financial decisions and business financial decisions can best be made by applying the:
A) Internal Ranking Criteria.
B) Best Alternatives Matrix.
C) Valuation Principle.
D) Financial Comparison Analysis.
E) Law of One Price.
Answer: C
Explanation: A)
B)
C)
D)
E)
Diff: 1 Type: MC
Skill: Conceptual
Objective: 1.1 Grasp the importance of financial information in both your personal and business lives
Page 1
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Tutor247. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $29.99. You're not tied to anything after your purchase.
