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:

Social Media

Platforms that allow users to create and share content or to participate in social networking, facilitating digital communication and interaction.

Tourism Industry

A sector that encompasses a wide range of businesses and activities related to providing services and facilities for travelers and tourists, including accommodation, transportation, food and beverage, and attractions.

Naming Rights

A financial transaction and form of advertising where a company or individual purchases the right to name a facility or event, often for promotional purposes.

Athletic Venue

A building, stadium, or field where sports and physical activities are held, designed to accommodate athletes and spectators.