Fundamentals Of Corporate Finance, 4th Canadian Ed
Fundamentals of Corporate Finance, 4th Canadian Ed
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Test Bank Fundamentals of Corporate Finance, 4th Canadian Edition By Berk, DeMarzo, Stangeland, Marosi, Harford 2023| Complete A+
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Fundamentals of Corporate Finance, 4th Canadian Ed
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Fundamentals Of Corporate Finance, 4th Canadian Ed
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Fundamentals of Corporate Finance
Test Bank Fundamentals of Corporate Finance, 4th Canadian Edition, 4e Berk, DeMarzo, Stangeland, Marosi, Harford 2023| Complete A+
Fundamentals of Corporate Finance, 4e, GE (Berk/DeMarzo/Harford)
Chapter 1 Corporate Finance and the Financial Manager
1.1 Why Study Finance?
1) The Valuation Princ...
Fundamentals of Corporate Finance, 4th Canadian Ed
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Fundamentals of Corporate Finance, 4e, GE (Berk/DeMarzo/Harford)
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
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Previous Edition
2) Financial decisions require that you weigh alternatives in strictly monetary
terms.
Answer: FALSE
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Revised
3) 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.
Answer: D
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Previous Edition
,1.2 The Four Types of Firms
1) Partnerships are the most common type of business firm in the world.
Answer: FALSE
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Revised
,2) Corporations have come to dominate the business world through their ability
to raise large amounts of capital by sale of ownership shares to anonymous
outside investors.
Answer: TRUE
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Revised
3) Which of the following types of firms does NOT have limited liability?
A) sole proprietorships
B) limited partnerships
C) corporations
D) none of the above
Answer: A
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Revised
4) Over four-fifths of all U.S. business revenue is generated by which type of
firm?
A) sole proprietorships
B) partnerships
C) limited partnerships
D) corporations
Answer: D
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Revised
5) What is the most common type of firm in the United States and the world?
A) sole proprietorships
B) partnerships
, C) limited partnerships
D) corporations
Answer: A
Diff: 1 Var: 1
Skill: Conceptual
AACSB Objective: Analytic Skills
Author: DS
Question Status: Previous Edition
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