Which of the Following Statements Is Incorrect

question 66

Multiple Choice

Which of the following statements is incorrect?

• A)Financial markets attract funds from investors and channel the funds to corporations.
• B)Money markets enable corporations to borrow funds on a short-term basis so that they can support their existing operations.
• C)Financial institutions serve solely as intermediaries with the financial markets and never serve as investors.
• D)Investors seek to invest their funds in the stock of firms that are presently undervalued and have much potential to improve.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent or salaries.

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product.

Microbrewery

A small brewery that produces beer in limited quantities, often emphasized on quality, flavor, and brewing technique.

Flavor Specifications

Detailed descriptions of the ingredients, proportions, and processes that define the specific taste profile of a food or beverage product.