Firms That Have Many Divisions with Different Lines of Business

question 14

True/False

Firms that have many divisions with different lines of business do not use a companywide WACC to evaluate projects.

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Definitions:

Warranty

An undertaking relating to characteristics of a thing being sold; a guaranty.

Caveat Venditor

A principle meaning "let the seller beware", placing the burden on sellers to disclose defects and ensure the product meets certain standards.

Caveat Emptor

“Let the buyer beware.”

Unmerchantable

Referring to goods or products that fail to meet minimum quality standards for sale to consumers or are otherwise unfit for their intended purpose.