Quiz Ch 01 – T/F Company’s Primary Goal: Current Period Profits
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The foremost objective of a company is the maximization of profits for the current period.
True or false: The foremost objective of a company is the maximization of profits for the current period.
True or false: In the United States, the governance of large public companies primarily relies on the board of directors and stock market influence, whereas in many other countries, control often shifts to major stockholders, typically banks and other corporations, with less emphasis on the stock market.
True or false: The segregation of ownership and management stands out as a defining trait of corporations.
True or false: A successful investment raises the firm’s value.
True or false: Delta’s $1.0 billion bond issuance is a financing decision.
True or false: Under the Dodd-Frank financial reform law of 2010, shareholders were granted the authority to cast a binding vote on executive compensation.
True or false: The decision by Facebook to spend $700 million to acquire Instagram constitutes an investment decision.
True or false: Financial analysts are responsible for overseeing the risk associated with investment projects and financing decisions.
True or false: The primary responsibility of a financial manager is to make sound investment and financing decisions.
True or false: The $3.6 billion spent by GlaxoSmithKline on researching and developing new drugs is a capital budgeting decision, rather than a financing decision.