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Test Bank Principles of Managerial Finance, Brief, 8th Edition Chad J Zutter A=

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1.1 Finance and the firm.

 

1) A firm is a business organization that sells goods and services.

Answer: TRUE

Diff: 1

Topic: Finance and the firm

Learning Obj.: LG 1

Learning Outcome: F-01

AACSB: Analytical Thinking

 

2) In finance we say that the goal of the firm ought to be to maximize profits.

Answer: FALSE

Diff: 1

Topic: Finance and the firm

Learning Obj.: LG 1

Learning Outcome: F-01

AACSB: Analytical Thinking

 

3) Other things being equal, it is better to receive money sooner rather than later.

Answer: TRUE

Diff: 1

Topic: Managing 

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