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Student name:__________
1) As finance emerged as a new field, much emphasis was placed on mergers and acquisitions.
⊚ true
⊚ false
2) Inflation is assumed to be a temporary problem that does not affect financial decisions.
⊚ true
⊚ false
3) Financial capital is composed of long-term plant and equipment, as well as other tangible
investments.
⊚ true
⊚ false
4) Real capital is composed of long-term plant and equipment.
⊚ true
⊚ false
5) During the 1930s, financial practice revolved around such topics as the preservation of
capital, maintenance of liquidity, the reorganization of financially troubled corporations, and
bankruptcy.
⊚ true
⊚ false
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