Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)Lease payments are a fixed obligation of the firm.
• B)The risk of the lease payments is no greater than the risk of secured debt,so it is reasonable to discount the lease payments at the firm's secured borrowing rate.
• C)If a firm purchases a piece of equipment,the expense is a capital expenditure.Therefore,the purchase price can be depreciated over time,generating a depreciation tax shield.
• D)If the equipment is leased and the lease is a non-tax lease,there is no capital expenditure,but the lease payments are an operating expense.

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Definitions:

Rituals

Are formal, often repeated behaviors and practices that carry symbolic meaning within a culture or organization.

Sagas

Long, involved stories or series of incidents that are often related to historical events, legends, or the adventures of a hero.

Managerial Myths

Managerial myths are misleading beliefs or misconceptions about management and leadership that are widely accepted despite lacking evidence or practical efficiency.

Cultural Artifacts

Physical objects or intangible aspects of culture that embody the customs, philosophies, and achievements of a society.