Which of the Following Statements Is FALSE

question 81

Multiple Choice

Which of the following statements is FALSE?

• A)A capital budget lists the projects and investments that a company plans to undertake during the coming year.
• B)Income Tax = EBIT × (1 - τ_c).
• C)When sales of a new product displace sales of an existing product,the situation is often referred to as cannibalization.
• D)Overhead expenses are often allocated to the different business activities for accounting purposes.

Understand the importance of standardization in manufacturing and its impact on efficiency and product quality.

Acknowledge environmental considerations in manufacturing, including the necessity for environmental impact assessments.

Understand the concept and implications of globalization.

Recognize the diversity of national groups and ethnicities worldwide.

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Definitions:

Market

A forum where buyers and sellers come together to exchange goods, services, or information.

Goods and Services

Goods and services encompass all the physical items and intangible benefits that are produced and consumed to satisfy human wants and needs.

Factors of Production

Factors of production are the inputs used in the production of goods or services in the attempt to make an economic profit, including labor, capital, land, and entrepreneurship.

Circular-Flow Model

The circular-flow model is an economic diagram that illustrates how households and firms interact through markets for products and resources, depicting the continuous flow of money and resources.