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:

Assertive

The quality of being confident and direct in claiming one's rights or putting forward one's opinions without being aggressive.

Unassertive

A behavioral characteristic in which an individual tends to be passive or submissive, often failing to express their own opinions or needs.

Interpersonal Conflict

A disagreement or clash between individuals due to differing opinions, values, or interests.

Conflict Management

The process of identifying and addressing differences that have the potential to escalate into disputes, in a constructive manner.