Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)When following a conservative financing policy,a firm would use long-term sources of funds to finance its fixed assets,permanent working capital,and some of its seasonal needs.
• B)An aggressive financing policy also increases the possibility that managers of the firm will use excess cash nonproductively-for example,on perquisites for themselves.
• C)A firm could finance its short-term needs with long-term debt,a practice known as a conservative financing policy.
• D)To implement a conservative financing policy effectively,there will necessarily be periods when excess cash is available-those periods when the firm requires little or no investment in temporary working capital.

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Definitions:

Polygynous

A marital arrangement in which a man is married to more than one woman at the same time.

Endogamous

A social practice where marriage is restricted to members of the same social group or category, maintaining cultural or social homogeneity.

Model Minority Image

A stereotype that presents a particular minority group as a demographic whose members are perceived to achieve a higher degree of socio-economic success than the population average.

Racial Discrimination

Prejudicial treatment of individuals based on their race.