Which of the Following Statements Is NOT CORRECT

question 124

Multiple Choice

Which of the following statements is NOT CORRECT?

• A) Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
• B) Accruals are "free" in the sense that no explicit interest is paid on these funds.
• C) A conservative approach to working capital management will result in most if not all permanent assets being financed with long-term capital.
• D) The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt.This added risk stems from the greater variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt.
• E) Bank loans generally carry a higher interest rate than commercial paper.

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Definitions:

Organizational Culture

The shared values, beliefs, norms, and practices that shape the social and psychological environment of a business organization.

Inclusivity

The practice of including people from all backgrounds, ensuring equal opportunities, and embracing diversity in decision-making, policy formation, and community building.

Occupational Subcultures

refer to subsets within an organization or occupation that have their own unique values, norms, and behaviors different from the broader organizational culture.

Functional Subcultures

Distinct cultures that develop within an organization’s departments, shaped by specific functions and professional backgrounds of their members.