Feasability Study
Chapter 1
The Role and Environment of Managerial Finance Learning Goal 1: Define finance, its major areas and opportunities, and the legal forms of business organization.
1.1.1) A financial analyst is responsible for maintaining and controlling the firmʹs daily cash balances. Frequently manages the firmʹs short-term investments and coordinates short-term borrowing and banking relationships. Answer: FALSE
Topic: Career Opportunities
1.1.2) Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government. Answer: TRUE
Topic: Finance Defined
1.1.3) Financial services are concerned with the duties of the financial manager. Answer: FALSE
Topic: Role of Financial Manager
1.1.4) Financial managers actively manage the financial affairs of many types of business -financial and non-financial, private and public, for-profit and not-for-profit. Answer: TRUE
Topic: Role of Financial Manager
1.1.5) In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners. Answer: TRUE
Topic: Legal Form of Organization
1.1.6) In partnerships, a partner can readily transfer his/her wealth to other partners. Answer: FALSE
Topic: Legal Form of Organization
1.1.7) The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer. Answer: FALSE
Topic: Corporate Governance
1.1.8) The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors. Answer: FALSE
Topic: Legal Form of Organization
1.1.9) In limited partnerships, only one partner may assume limited liability. All other partners have to have unlimited liability. Answer: FALSE
Topic: Legal Form of Organization
2 Gitman · Principles of Managerial Finance, 12e
1.1.10) The president or chief
The Role and Environment of Managerial Finance Learning Goal 1: Define finance, its major areas and opportunities, and the legal forms of business organization.
1.1.1) A financial analyst is responsible for maintaining and controlling the firmʹs daily cash balances. Frequently manages the firmʹs short-term investments and coordinates short-term borrowing and banking relationships. Answer: FALSE
Topic: Career Opportunities
1.1.2) Finance is concerned with the process institutions, markets, and instruments involved in the transfer of money among and between individuals, businesses and government. Answer: TRUE
Topic: Finance Defined
1.1.3) Financial services are concerned with the duties of the financial manager. Answer: FALSE
Topic: Role of Financial Manager
1.1.4) Financial managers actively manage the financial affairs of many types of business -financial and non-financial, private and public, for-profit and not-for-profit. Answer: TRUE
Topic: Role of Financial Manager
1.1.5) In partnerships, owners have unlimited liability and may have to cover debts of other less financially sound partners. Answer: TRUE
Topic: Legal Form of Organization
1.1.6) In partnerships, a partner can readily transfer his/her wealth to other partners. Answer: FALSE
Topic: Legal Form of Organization
1.1.7) The board of directors is responsible for managing day-to-day operations and carrying out the policies established by the chief executive officer. Answer: FALSE
Topic: Corporate Governance
1.1.8) The sole proprietor has unlimited liability; his or her total investment in the business, but not his or her personal assets, can be taken to satisfy creditors. Answer: FALSE
Topic: Legal Form of Organization
1.1.9) In limited partnerships, only one partner may assume limited liability. All other partners have to have unlimited liability. Answer: FALSE
Topic: Legal Form of Organization
2 Gitman · Principles of Managerial Finance, 12e
1.1.10) The president or chief