Chapter 1: The Role of Financial Management.
True or False



1.  

Capital budgeting is a responsibility of the Treasurer.

TRUE
FALSE


2.  

Cash management is a responsibility of the Controller.

TRUE
FALSE


3.  

The asset management decision involves determining the optimal firm size and the assets that should be acquired or eliminated.

TRUE
FALSE


4.  

The financing decision involves determining how the assets will be financed with regards to the type and mix as well as the best dividend policy.

TRUE
FALSE


5.  

The greater the ownership percentage of managers, then the more likely the managers will behave in a shareholder wealth maximizing behavior.

TRUE
FALSE


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