Test Bank For Foundations of Financial Management 10th Canadian Edition

Test Bank For Foundations of Financial Management 10th Canadian Edition

$25.00

By: Stanley B. Block

Edition: 10th Edition

Format: Downloadable ZIP Fille

Resource Type: Test bank

Duration: Unlimited downloads

Delivery: Instant Download

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Test Bank For Foundations of Financial Management 10th Canadian Edition

Chapter 01 The Goals and Functions of Financial Management

1. What is the primary goal of financial management?

A. Increased earnings

 

B. Maximizing cash flow

 

C. Maximizing shareholder wealth

 

D. Minimizing risk of the firm

 

2. Proper risk-return management means that:

A. the firm should take as few risks as possible.

 

B. consistent with the objectives of the firm, an appropriate trade-off between risk and return should be determined.

 

C. the firm should earn the highest return possible.

 

D. the firm should value future profits more highly than current profits.

 

3. Which of the following is not a major area of concern and emphasis in modern financial management and in this text?

A. Inflation and its effect on profits

 

B. Stable short-term interest rates

 

C. Changing international environment

 

D. Increased reliance on debt

 

4. Which of the following is not a major area of concern and emphasis in modern financial management and in this text?

A. Marginal analysis

 

B. Risk-return trade-off

 

C. Commodity trading

 

D. Changing financial institutions

 

5. The effect of the high rates of inflation experienced during the 1970s and early 1980s was to make:

A. the gold standard was eliminated.

 

B. purchasing power increased.

 

C. interest rates fell.

 

D. capital budgeting decisions less reliable.

 

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