Which of the Following Statements Is FALSE

question 97

Multiple Choice

Which of the following statements is FALSE?

• A)Firms with high R&D costs and future growth opportunities typically maintain high debt levels.
• B)The tradeoff theory explains how firms should choose their capital structures to maximize value to current shareholders.
• C)With tangible assets,the financial distress costs of leverage are likely to be low,as the assets can be liquidated for close to their full value.
• D)Proponents of the management entrenchment theory of capital structure believe that managers choose a capital structure to avoid the discipline of debt and maintain their own job security.

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Definitions:

Sunlight

The natural light emitted by the sun, which is essential for photosynthesis in plants, influences climate and weather, and provides energy and warmth to the Earth's surface.

Ozone

A molecule consisting of three oxygen atoms, important in the stratosphere for protecting the Earth from harmful ultraviolet radiation.

Antarctica

The Earth's southernmost continent, covered by an ice sheet and surrounded by the Southern Ocean.

Upper Stratosphere

The higher portion of the stratosphere, located above the troposphere in the Earth's atmosphere, important for its role in filtering ultraviolet radiation.