Which of the Statements Below Is FALSE

question 44

Multiple Choice

Which of the statements below is FALSE?

• A)The cash that the firm generates from its operating decisions (use of its assets)is used to either pay creditors or the owners of the company.
• B)Cash flow from assets shows the success or failure of the operating decisions.
• C)Cash flow to owners shows cash paid to owners plus any new borrowing from owners.
• D)Cash flow to creditors shows a portion of how the firm is financing the operations.

---

Definitions:

Capacity Utilization

Refers to the percentage of total production capacity that is actually being used by a company over a specific period.

Mass Customization

A marketing and manufacturing technique that combines the flexibility and personalization of custom-made products with the low unit costs associated with mass production.

Market Segmentation

The process of dividing a heterogeneous market into smaller, more homogeneous groups of customers with similar needs, characteristics, or behaviors.