Which of the Following Statements Is Generally NOT True

question 41

Multiple Choice

Which of the following statements is generally NOT true?

• A)A firm should attempt to match the nature of a project with the duration of the financing it needs.
• B)Short-term debt usually carries lower interest rates than long-term debt with comparable default risk.
• C)Issuing variable rate debt increases financial uncertainty relative to issuing fixed-rate debt.
• D)All of the above statements are true.

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Definitions:

Ethics

A branch of philosophy that deals with questions about what is morally right and wrong, good and bad, fair and unfair.

Social Responsibility

The concept that businesses should balance profit-making activities with activities that benefit society; it involves developing businesses with a positive relationship to the society in which they operate.

Fiduciaries

Individuals or organizations that are entrusted to manage assets or wealth on behalf of another party and are required to act in the best interests of the beneficiary.

Duty of Care

The legal obligation to ensure the safety or well-being of others by taking reasonable precautions or actions to avoid acts of negligence.