Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)By relying on short-term debt the firm exposes itself to funding risk,which is the risk of incurring financial distress costs should the firm not be able to refinance its debt in a timely manner or at a reasonable rate.
• B)An ultra-conservative policy would involve financing even some of the plant,property,and equipment with short-term sources of funds.
• C)With a conservative financing policy,the firm would use short-term debt very sparingly to meet its peak seasonal needs.
• D)Short-term debt can have lower agency and "lemons" costs than long-term debt,and an aggressive financing policy can benefit shareholders.

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Definitions:

Equal Employment Opportunities

represent policies and practices that ensure all job candidates and employees are treated without discrimination based on race, gender, religion, age, or other non-merit factors.

Job Roles

Defined set of responsibilities and duties associated with a specific position within an organization.

Job Analysis

The process of gathering, documenting, and analyzing information about a job, including tasks, responsibilities, and the necessary skills or qualifications.

High Turnover

Refers to the rapid rate at which employees leave a company, often resulting in increased hiring and training costs.