Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)If a company anticipates an ongoing surplus of cash,it may choose to increase its dividend payout.
• B)Seasonal sales can create large short-term cash flow deficits and surpluses.
• C)The first step in short-term financial planning is to forecast the company's future net working capital.
• D)Deficits resulting from investments in long-term projects are often financed using long-term sources of capital,such as equity or long-term bonds.

Distinguish between fixed and variable costs with relevant examples.

Calculate and understand the implications of price elasticity of demand.

Compare and contrast the marketing challenges and opportunities within different competition types.

Compute break-even points and understand the importance of managing overhead costs.

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Definitions:

Agreement For Sale

An agreement where title will be transferred at some time in the future, typically once the property is fully paid for; an agreement that grants possession of property to the purchaser pending full payment of the price.

Retake Possession

The act of reclaiming ownership or control of property, typically by a seller or lender from whom the property was bought on credit or leased.

Pay Installments

To make payments for a good or service over a period of time in portions, rather than paying the full amount upfront.

Severance

An owner’s removal of chattel that he has affixed; separation or division of joint ownership; action by one of the co-owners that is inconsistent with joint tenancy.