Which of the Following Is NOT a Reason Why Financial

question 14

Multiple Choice

Which of the following is NOT a reason why financial managers must take great care when making investment decisions?

• A) These investment decisions determine whether the firm will add value for its owners.
• B) These investment decisions typically involve substantial costs which must be carefully weighed against their potential benefits.
• C) These investment decisions determine the corporation's mix of debt and equity.
• D) These investments determine the long-term directions in which the company may move.

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Definitions:

Aversions

A negative reaction, often psychological or physical, to a specific substance or situation.

Chemotherapy

A type of cancer treatment that uses drugs to destroy cancer cells by halting their ability to grow and divide.

Prevented

Stopped from happening or kept from occurring.

Flavor Aversion

Avoidance of a flavor that precedes an illness experience.