Which Statement Is True

question 182

Multiple Choice

Which statement is true?

• A)A firm that uses its own funds,rather than borrow money,does not need to take the going rate of interest into account.
• B)The only consideration that a firm undertaking an investment project needs to consider is the interest rate.
• C)The concept of opportunity cost may be applied to a firm that is considering using its own funds for an investment project.
• D)None is true.

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Definitions:

Tying Agreements

Arrangements where the seller conditions the sale of one product on the purchase of another product.

Per Se Violations

Actions or practices that are considered automatically illegal under anti-trust laws, without needing to prove harm.

Tying Agreement

A contractual agreement requiring a buyer to purchase an unwanted product or service to obtain a desired one, often seen as anti-competitive.

Videocassette Recorders

Devices used to record television programs and play them back through a television, using magnetic tape cassettes.