Which of the Following Statements Is FALSE

question 18

Multiple Choice

Which of the following statements is FALSE?

• A)On the other hand,by relying on short-term debt the firm exposes itself to funding risk,which is the risk of incurring financial distress costs should the firm not be able to refinance its debt in a timely manner or at a reasonable rate.
• B)An ultra-conservative policy would involve financing even some of the plant,property,and equipment with short-term sources of funds.
• C)With a conservative financing policy,the firm would use short-term debt very sparingly to meet its peak seasonal needs.
• D)Short-term debt can have lower agency and lemons costs than long-term debt,and an aggressive financing policy can benefit shareholders.

Comprehend the challenges and psychosocial tasks of young adulthood as defined by Erikson.

Understand different types of managers within organizations and their characteristics.

Explain the role of power in organizational subunits and how it is acquired through strategic contingencies.

Identify the factors that increase or decrease the power of organizational subunits.