Which of the Following Statements Is False

question 85

Multiple Choice

Which of the following statements is false?

• A) Decisions about what to produce in the former Soviet Union were made primarily by political leaders.
• B) Soviet planners consistently set prices that were too high, and this led to severe shortages.
• C) Soviet plant managers lacked incentives to adopt new technologies.
• D) Soviet plant managers lacked incentives to cut costs.

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Definitions:

Growth Rate

The percentage change in the value of a specific metric (e.g., revenue, population) over a designated period.

Cost Of Capital

The earnings threshold a business needs to meet on investment endeavors to preserve its market worth and secure financing.

Debt-Equity Ratio

A financial comparison indicating the relationship of debt to equity in financing a company’s assets.

WACC

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to evaluate investment opportunities.