Reference no: EM132591760
Question 1: Traditionally, financial management was viewed as a field of study limited to only raising of money *
A. true
B. false
Question 2: Which one of the following statements is not true?
A. The goal of profit maximization ignores the timing of profit
B. Shareholder wealth is measured by the market value of the firm's common stock
C. The agency problem arises due to the separation of ownership and control in a corporation
D. The goal of profit maximization is equivalent to the goal of wealth maximization
Question 3: The decision function of financial management can be broken down into ----decisions.
A. financing and investment
B. investment, financing, and Dividend
C. financing and dividend
D. capital budgeting, cash management, and credit management
Question 4: The long-run objective of financial management is to:
A. Maximize profit/earnings per share.
B. Maximize the value of the firm's common stock
C. Maximize return on investment
D. Maximize market share.
Question 5: Financial managers of today have fewer responsibilities than their counterparts of the early 20th century.
A. true
B. false