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FUNDAMENTALS OF CORPORATE FINANCE, 5TH EDITION BY ROBERT , DAVID , BATES & GILLAN. (ALL CHAPTERS 1-21) | TEST BANK | BRAND NEW | GRADED A+$25.49
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FUNDAMENTALS OF CORPORATE FINANCE, 5TH EDITION BY ROBERT , DAVID , BATES & GILLAN. (ALL CHAPTERS 1-21) | TEST BANK | BRAND NEW | GRADED A+
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Course
Fundamentals of Corporate Finance.
Institution
Fundamentals Of Corporate Finance.
FUNDAMENTALS OF CORPORATE FINANCE, 5TH EDITION BY ROBERT , DAVID , BATES & GILLAN. (ALL CHAPTERS 1-21) | TEST BANK | BRAND NEW | GRADED A+
Chapter 1 The Financial Manager and the Firm
1) The financial manager is responsible for making decisions that are in the best interests of th...
,FUNDAMENTALS OF CORPORATE FINANCE, 5TH EDITION
BY ROBERT , DAVID , BATES & GILLAN. (ALL CHAPTERS 1-
21) | TEST BANK | BRAND NEW | GRADED A+
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
2
,Bloomcode: Knowledge
AACSB: Analytic
IMA: FSA
AICPA: Process and Resource Management Perspectives
3
, 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
4
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