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Fundamentals of
Corporate Finance 2nd
edition
Prepared by
True/False
1. The financial manager is responsible for making decisions that are in the best interest of
the company's owners.
*a. True
b. False
Correct answer: a
2. The local Liberal Party is a stakeholder in a local company that makes no political
donations to either party.
a. True
*b. False
Correct answer: b
*a. True
b. False
Correct answer: a
a. True
*b. False
Correct answer: b
5. The most fundamental way that a business can grow in size is from the reinvestment of
cash flows or earnings.
*a. True
b. False
Correct answer: a
a. True
*b. False
Correct answer: b
a. True
*b. False
Correct answer: b
8. A good capital budgeting decision is one in which the benefits are worth more to the
company than the cost of the asset.
*a. True
b. False
Correct answer: a
9. The financing decision determines how companies raise cash to pay for their investments.
*a. True
b. False
Correct answer: a
10. The dollar difference between current assets and liabilities is called working capital.
a. True
*b. False
Correct answer: b
a. True
*b. False
Correct answer: b
Samuel Adams,
John Adams,
Massachusetts Bay.
Robert Treat Paine,
Elbridge Gerry.
Stephen Hopkins,
Rhode Island, etc.
William Ellery.
Roger Sherman,
Samuel Huntington,
Connecticut.
William Williams,
Oliver Wolcott.
William Floyd,
Philip Livingston,
New York.
Francis Lewis,
Lewis Morris.
Richard Stockton,
John Witherspoon,
New Jersey. Francis Hopkinson,
John Hart,
Abraham Clark.
Robert Morris,
Benjamin Rush,
Benjamin Franklin,
John Morton,
Pennsylvania. George Clymer,
James Smith,
George Taylor,
James Wilson,
George Ross.
Cesar Rodney,
Delaware. George Read,
Thomes McKean.
Samuel Chase,
William Paca,
Maryland.
Thomas Stone,
Charles Carroll, of Carrollton.
George Wythe,
Richard Henry Lee,
Thomas Jefferson,
Virginia. Benjamin Harrison,
Thomas Nelson, jr.,
Francis Lightfoot Lee,
Carter Braxton.
William Hooper,
North Carolina. Joseph Hewes,
John Penn.
Edward Rutledge,
Thomas Heyward, jr.,
South Carolina.
Thomas Lynch, jr.,
Arthur Middleton.
Button Gwinnett,
Georgia. Lyman Hall,
George Walton.
Resolved, That copies of the Declaration be sent to the several
assemblies, conventions, and committees or councils of safety, and to
the several commanding officers of the Continental Troops: That it
be PROCLAIMED in each of the United States, and at the Head of the
Army.—[Jour. Cong., vol. 1, p. 396.]
Articles of Confederation.
ARTICLES OF CONFEDERATION.