Which of the Following Statements Is FALSE

question 62

Multiple Choice

Which of the following statements is FALSE?

• A) One application of MM Proposition I is the useful device known as the market value balance sheet of the firm.
• B) The market value balance sheet captures the idea that value is created by a firm's choice of assets and investments.
• C) On the market value balance sheet the total value of all securities issued by the firm must equal the total value of the firm's assets.
• D) Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and reducing leverage or by holding bonds and adding more leverage.

---

Definitions:

Johari Window

A model used to improve understanding between individuals within a group, consisting of four quadrants that represent aspects of the self based on known or unknown information to oneself or others.

Culture

The set of shared attitudes, values, goals, and practices that characterizes an institution, organization, or group.

360-degree Feedback

A comprehensive feedback mechanism where an employee receives confidential, anonymous feedback from their supervisor, peers, subordinates, and sometimes even customers.

Annual Performance Review

A structured evaluation process in which an employee's job performance is assessed, typically once a year, by their supervisor or manager.