Test Bank for Corporate Finance Online, 2nd Edition
Strengthen your understanding with Test Bank for Corporate Finance Online, 2nd Edition, packed with challenging questions and expert solutions.
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Corporate Finance Online, 2e (Eakins/McNally)
Chapter 1 Introduction to Finance
LO1: Understand the Features of CFO
1) Section 1.1 does not contain any questions.
LO2: Understand the Four Facets of Finance
1) Finance is
A) the study of investment management.
B) the study of the stock exchange.
C) the study of the capital market and its many players.
D) the study of money management for personal use.
Answer: C
Explanation: C) Finance is the study of the capital market and its many players.
Diff: 1
Section: 2
AACSB: Analytical Skills
Learning Outcome: F-01: Describe the different financial markets and the role of the financial
managers
2) What is the purpose of the capital market?
A) To match people with money to entrepreneurs with great business ideas or concepts
B) To more easily regulate the flow of money between parties
C) To make money without trying
D) To allow people to buy stocks for retirement
Answer: A
Explanation: A) The capital market matches entrepreneurs with great business ideas or concepts
to people with money.
Diff: 1
Section: 2
AACSB: Analytical Skills
Learning Outcome: F-01: Describe the different financial markets and the role of the financial
managers
Corporate Finance Online, 2e (Eakins/McNally)
Chapter 1 Introduction to Finance
LO1: Understand the Features of CFO
1) Section 1.1 does not contain any questions.
LO2: Understand the Four Facets of Finance
1) Finance is
A) the study of investment management.
B) the study of the stock exchange.
C) the study of the capital market and its many players.
D) the study of money management for personal use.
Answer: C
Explanation: C) Finance is the study of the capital market and its many players.
Diff: 1
Section: 2
AACSB: Analytical Skills
Learning Outcome: F-01: Describe the different financial markets and the role of the financial
managers
2) What is the purpose of the capital market?
A) To match people with money to entrepreneurs with great business ideas or concepts
B) To more easily regulate the flow of money between parties
C) To make money without trying
D) To allow people to buy stocks for retirement
Answer: A
Explanation: A) The capital market matches entrepreneurs with great business ideas or concepts
to people with money.
Diff: 1
Section: 2
AACSB: Analytical Skills
Learning Outcome: F-01: Describe the different financial markets and the role of the financial
managers
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