Which of the Following Statements Is False

question 73

Multiple Choice

Which of the following statements is false?

• A) Self-promotion is not a substitute for quality products.
• B) Inferior products harm a firm's profitability and a nation's balance of payments.
• C) Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
• D) Quality-be it good or bad-will show up in perceptions about a firm's new products, employment practices, and supplier relations.
• E) Legislation, such as the Consumer Product Safety Act, sets and enforces product standards by banning products that do not meet those standards.

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Definitions:

Payback Period

The time required for an investment to generate cash flows sufficient to recoup the original investment cost.

Long Projects

Long projects refer to investments or initiatives with a duration that extends over a long period, often requiring considerable upfront costs and extensive planning.

Risk Variability

The degree of uncertainty or potential financial loss inherent in an investment decision.

Capital Projects

Long-term investment projects undertaken by a business or organization, typically involving the development or maintenance of infrastructure.