Which of the Following Statements Is False

question 45

Multiple Choice

Which of the following statements is false?

• A)Accepting a project with an internal rate of return greater than the required rate of return should result in an increase in a firm's share price.
• B)Accepting a project with an internal rate of return greater than the required rate of return should result in a positive net present value.
• C)Accepting a project with an internal rate of return less than the required rate of return should result in a negative net present value.
• D)Accepting a project with an internal rate of return equal to the required rate of return should result in an increase in a firm's share price.

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Definitions:

Coercive Power

A form of authority that relies on the threat of force or punishment to compel obedience.

Reward Power

is a form of influence where an individual has control over the distribution of rewards, motivating others to follow directions or achieve goals.

Referent Power

The influence one has over others because they respect, admire, or like the individual.

Organizational Learning

The process by which organizations acquire, improve, and manage knowledge to better adapt and succeed.