Which of the Following Statements Is FALSE

question 11

Multiple Choice

Which of the following statements is FALSE?

• A)Most projects will require the firm to invest in net working capital.
• B)The main components of net working capital are cash,inventory,receivables,and property,plant and equipment.
• C)ΔNWCt = NWCt - NWCt - 1.
• D)In the final year of a project,the firm ultimately recovers the investment in net working capital.

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Definitions:

Professional Corporation

A business entity formed by licensed professionals, such as lawyers or doctors, allowing them to provide their services through a corporate structure.

Sole Proprietorship

A form of business owned and operated by one person who is solely responsible for all its operations and debts.

Attorneys

Licensed professionals who are authorized to practice law, representing and advising clients in legal matters.

Associate Attorney

An attorney working for a law firm who is not a partner and does not have an ownership interest in the firm. Associates are usually less experienced attorneys and may be invited to become partners after working for the firm for several years.