Submitted by: Submitted by kooljam
Views: 36
Words: 2446
Pages: 10
Category: Business and Industry
Date Submitted: 02/04/2015 10:36 PM
CHAPTER 1—AN OVERVIEW OF FINANCE
MULTIPLE CHOICE
1. Which of the following are NOT factors that have made the trend toward globalization mandatory for many businesses?
a.|Lower trade barriers|
b.|Demand for high-quality, low-cost products|
c.|Increased volatility of exchange rates for foreign currency|
d.|Increased development costs|
e.|Improvements in transportation and communications.|
ANS: C PTS: 1 DIF: Moderate TOP: Globalization of Business
2. Which of the following is NOT one of the most important trends in managerial finance from the 1990s that continued into the twenty-first century?
a.|Regulatory attitude of government|
b.|Ongoing adaptation of electronic technology|
c.|Focus on corporate liquidity|
d.|Continued globalization of business|
e.|All of the above|
ANS: C PTS: 1 DIF: Moderate TOP: Managerial Finance
3. Which of the following statements are true?
a.|The value of any investment is based on the cash flows it is expected to generate in the future.|
b.|Investors are not generally risk averse.|
c.|Uncertain cash flows are preferred to certain cash flows.|
d.|All of the above are true.|
e.|None of the above are true.|
ANS: A PTS: 1 DIF: Moderate TOP: Value
4. A basic knowledge of finance will help you with your personal investments by helping you understand
a.|how to accurately predict changes in the short term interest rates.|
b.|how to determine the optimal dividend policy for each firm.|
c.|how to determine which technology is most likely to be accepted by consumers.|
d.|how to review companies and industries to determine their prospects for future growth and the risk inherent in those companies and industries.|
e.|how to predict the growth in sales for the firm.|
ANS: D PTS: 1 DIF: Moderate TOP: Investments
5. Which of the following is NOT one of the several new areas that managerial finance expanded to focus on in the 1980s?
a.|The dramatic increase in both the use of computers for analysis and the electronic transfer of...