A. Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write FALSE. 1. Financial Management, also called corporate finance, focuses on decisions relating to how much and what types of assets to acquire, how to raise the capital needed to purchase assets, and how to run the firm to maximize its value.
A. Direction: Read the statements carefully. Write TRUE if the statement is correct. Otherwise, write FALSE. 1. Financial Management, also called corporate finance, focuses on decisions relating to how much and what types of assets to acquire, how to raise the capital needed to purchase assets, and how to run the firm to maximize its value.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A. Direction: Read the statements carefully. Write TRUE if the statement is correct.
Otherwise, write FALSE.
1. Financial Management, also called corporate finance, focuses on decisions relating to
how much and what types of assets to acquire, how to raise the capital needed to purchase
assets, and how to run the firm to maximize its value.
_2. Corporations are similar to proprietorships in that they can be established relatively
easily and inexpensively.
3. One of the advantages of sole proprietorships is that the life of the business is limited
to the life of the individual who created it.
4. A corporation is a legal entity created by its partners, and it is separate and distinct
from its owners and managers.
5. The firm's principal goal should be to maximize the wealth of its stockholders, which
means maximizing the value of its stock.
6. Business Finance and Accounting are not the same things.
7. The role of the financial manager is not to provide financial information but to make
decisions involving finance.
8. Maximization of a company's profit is just the same as maximization of shareholders'
wealth.
_9. In a corporation, the death or withdrawal of an owner affects the corporation's legal
existence.
10. A financial manager's primary responsibility is to assess organizational efficiency
through efficient resource allocation, acquisition, and management.
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