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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1Corporate Finance Online, 2e(Eakins/McNally)Chapter 1Introduction to FinanceLO1: Understand the Features of CFO1) Section 1.1 does not contain any questions.LO2: Understand the Four Facets of Finance1) Finance isA) 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: CExplanation: C) Finance is the study of the capital market and its many players.Diff: 1Section: 2AACSB: Analytical SkillsLearning Outcome: F-01: Describe the different financial markets and the role of the financialmanagers2) What is the purpose of the capital market?A) To match people with money to entrepreneurs with great business ideas or conceptsB) To more easily regulate the flow of money between partiesC) To make money without tryingD) To allow people to buy stocks for retirementAnswer: AExplanation: A) The capital market matches entrepreneurs with great business ideas or conceptsto people with money.Diff: 1Section: 2AACSB: Analytical SkillsLearning Outcome: F-01: Describe the different financial markets and the role of the financialmanagers

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