Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)A serious concern for large corporations is that managers may make large,unprofitable investments.
• B)While overspending on personal perks may be a problem for large firms,these costs are likely to be small relative to the overall value of the firm.
• C)Some financial economists explain a manager's willingness to engage in negative-NPV investments as empire building.
• D)While ownership is often diluted for small,young firms,ownership typically becomes concentrated over time as a firm grows.

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Definitions:

Glucagon

A hormone produced by the pancreas that promotes the increase of blood glucose levels by stimulating glycogen breakdown in the liver.

Pectin

A complex carbohydrate found in the cell walls of plants that is often used as a gelling agent in foods and for its dietary fiber properties.

Hemicellulose

A polysaccharide found in plant cell walls that works with cellulose and lignin to provide structural support.

Lignin

A complex organic polymer deposited in the cell walls of many plants, making them rigid and woody.