100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
Previously searched by you
Test Bank for Fundamentals of Corporate Finance, 5th Edition by Robert Parrino, David Kidwell, Bates & Gillan. ISBN 9781119795438 Chapter 1-21$12.99
Add to cart
Test Bank For Fundamentals Of Corporate Finance 5th Edition By Parrino, Consists Of 21 Complete Chapters, ISBN: 978-1119795438
Test bank for fundamentals of corporate finance 5th edition by Robert Parrino, David Kidwell
TEST BANK For Fundamentals of Corporate Finance, 5th Edition by Robert Parrino, David Kidwell, All Chapters 1 to 21 complete Verified editon ISBN:9781119795438
All for this textbook (67)
Written for
Fundamentals of Corporate Finance, 5th Edition by
All documents for this subject (7)
Seller
Follow
TestsBanks
Reviews received
Content preview
Test Bank for
Fundamentals of Corporate Finance, 5th Edition by Robert Parrino, David Kidwell, Bates &
Gillan. ISBN 9781119795438
Chapter 1-21
Chapter 1 The Financial Manager and the Firm
1) The financial manager is responsible for making decisions that are in the best interests of the
firm's owners.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives
2) A patent is a productive asset for a technology-based firm.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
3) Intangible assets generate most of a manufacturing firm's cash flows.
Answer: FALSE
Diff: 2
Learning Objective: LO 1
Bloomcode: Application
AACSB: Analytic
IMA: Corporate Finance
AICPA: Process and Resource Management Perspectives
4) The most fundamental way a business can grow in size is by reinvesting cash flows or earnings.
Answer: TRUE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives
1
,5) A firm that goes bankrupt will always be liquidated.
Answer: FALSE
Diff: 2
Learning Objective: LO 1
Bloomcode: Application
AACSB: Analytic
IMA: Corporate Finance
AICPA: Resource Management
6) Capital assets are generally short term in nature.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Corporate Finance
AICPA: Process and Resource Management Perspectives
7) A good capital budgeting or investment decision is one in which the benefits are worth more to
the firm than the cost of the project.
Answer: TRUE
Explanation: Regardless of the project, a good investment is one in which the benefits are worth
more to the firm than the costs of the asset.
Diff: 2
Learning Objective: LO 1
Bloomcode: Analysis
AACSB: Analytic
IMA: Budget Preparation
AICPA: Resource Management
8) Investment decisions determine how firms raise capital to pay for their investments.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Investment Decisions
AICPA: Strategic/Critical Thinking
9) Net working capital is the dollar difference between a firm's total current assets and total
liabilities.
Answer: FALSE
Diff: 1
Learning Objective: LO 1
Bloomcode: Knowledge
AACSB: Analytic
IMA: Budget Preparation
AICPA: Process and Resource Management Perspectives
2
,10) A sole proprietorship is a business where ownership interest can be transferred to someone
else.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
11) One of the disadvantages of a general partnership is the double taxation of profits.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
12) Unlimited liability means that the owner of a firm is responsible for paying all the bills of the
firm in the event of a bankruptcy.
Answer: TRUE
Diff: 2
Learning Objective: LO 2
Bloomcode: Application
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
13) The process of transferring ownership of a sole proprietorship is relatively easy compared to a
public corporation.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
14) General partners in a business have limited liability with regard to money owed to creditors.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Comprehension
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
3
, 15) The owners of C-corporations are not subject to double taxation.
Answer: FALSE
Diff: 1
Learning Objective: LO 2
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
16) Privately held corporations are allowed to have stockholders.
Answer: TRUE
Diff: 1
Learning Objective: LO 2
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
17) The treasurer of a corporation usually reports to the CFO of the firm.
Answer: TRUE
Diff: 1
Learning Objective: LO 3
Bloomcode: Knowledge
AACSB: Analytic
IMA: Business Economics
AICPA: Global and Industry Perspectives
18) The external auditors of the firm provide an independent annual audit of the firm's financial
statements and report their findings directly to the CFO of the firm.
Answer: FALSE
Diff: 1
Learning Objective: LO 3
Bloomcode: Knowledge
AACSB: Analytic
IMA: Reporting
AICPA: Reporting
19) Maximizing revenue should be the goal of the firm.
Answer: FALSE
Diff: 1
Learning Objective: LO 4
Bloomcode: Knowledge
AACSB: Analytic
IMA: Performance Measurement
AICPA: Strategic/Critical Thinking
4
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 TestsBanks. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
