Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A) The relative proportions of debt, equity, and other securities that a firm has outstanding constitute its capital structure.
• B) The project's net present value (NPV) represents the value to the new investors of the firm created by the project.
• C) When corporations raise funds from outside investors, they must choose which type of security to issue.
• D) The most common choices are financing through equity alone and financing through a combination of debt and equity.

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Definitions:

Social Impact

The effect an organization's actions have on the well-being of a community or society at large.

Corporate Leaders

Executives and high-level managers who have significant responsibility in guiding a corporation's strategy and operations.

Ethical Leadership

A leadership style guided by moral principles and values aiming to influence organizational behavior positively.

Stakeholders

Individuals or groups that have an interest, stake, or investment in a business or project and can be affected by its outcomes.