Name:
Class:
Date:
Test Bank For Corporate Finance, 3rd Edition John Graham Chris Adam Brindha Gunasingham Chapter 1-23 1 THE SCOPE OF CORPORATE FINANCE Multiple Choice 1. When identifying projects that increase company value, one of the tasks for financial managers is to identify
those projects where: a. benefits are likely to exceed the project’s costs b. taking the project will increase the book value of the company’s common share c. taking the project will decrease the book value of the company’s debt outstanding d. the project’s cost are worthwhile for investors ANSWER: a POINTS: 1 DIFFICULTY: Easy REFERENCES: 1.3 The Role of Corporate Finance in Business QUESTION TYPE: Multiple Choice HAS VARIABLES: False NATIONAL STANDARDS: United States - Reflective thinking OTHER: LOC: Understand the goal of the capital budgeting process DATE CREATED: 12/1/2020 2:43 AM DATE MODIFIED: 12/1/2020 2:43 AM 2. Which finance career classification involves analysing a company’s business processes and strategies as well
as recommending a change in practice in order to make a company more competitive? a. Corporate finance b. Commercial banking c. Investment banking d. Consulting ANSWER: d POINTS: 1 DIFFICULTY: Moderate REFERENCES: 1.4e Consulting QUESTION TYPE: Multiple Choice HAS VARIABLES: False NATIONAL STANDARDS: United States - Reflective thinking OTHER: LOC: Understand different career opportunities available to finance majors DATE CREATED: 12/1/2020 2:43 AM DATE MODIFIED: 12/1/2020 2:43 AM 3. If you would like to trade debt and equity securities for customers, which finance career classification should
you target? Copyright Cengage Learning. Powered by Cognero.
Page 1