Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
• C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
• D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

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Definitions:

Income Gap

A gap in income between one group and another, such as discrepancies in income between older and younger employees performing that same job.

Systemic Ageism

Discrimination or prejudice against individuals based on age, entrenched and normalized within societal systems and institutions.

Ephebophobic

Having an irrational fear of youths or a dislike of young people.

Ageism

Discrimination or prejudice against individuals based on their age, particularly among the elderly.