FNAN 303 T/F Questions

The 3 main concerns in corporate finance are how to spend money on long-term projects, how to raise funds, and how to manage regular financial activities.

True

The 3 main concerns in corporate finance are how to spend money on long-term projects, how to raise funds, and how to maintain an effective separation between ownership and management.

False

The area of finance that involves firms that buy, sell, price, and advise on financial assets like stocks and bonds to help determine how money is allocated to manage risk and earn returns is referred to as investments.

True

The area of finance that involves firms that buy, sell, price, and advise on financial assets like stocks and bonds to help determine how money is allocated to manage risk and earn returns is referred to as financial institutions.

False

The area of finance that involves firms such as commercial banks, investment banks, and insurance companies that collect funds from some participants and provide funds to others, acting as intermediaries in the financial system is referred to as investments.

False

The area of finance that involves firms such as commercial banks, investment banks, and insurance companies that collect funds from some participants and provide funds to others, acting as intermediaries in the financial system is referred to as financial institutions

True

Effective corporate governance can help reduce conflicts of interest by providing oversight and by aligning managerial incentives with shareholder goals.

True

Effective corporate governance can help reduce conflicts of interest by providing oversight and by providing limited liability.

False