Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)When following a conservative financing policy,a firm would use long-term sources of funds to finance its fixed assets,permanent working capital,and some of its seasonal needs.
• B)An aggressive financing policy also increases the possibility that managers of the firm will use excess cash nonproductively-for example,on perquisites for themselves.
• C)A firm could finance its short-term needs with long-term debt,a practice known as a conservative financing policy.
• D)To implement a conservative financing policy effectively,there will necessarily be periods when excess cash is available-those periods when the firm requires little or no investment in temporary working capital.

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Definitions:

Acetylcholine

A neurotransmitter in both the central and peripheral nervous systems involved in muscle activation and various brain functions.

Somatic Motor Nervous System

The part of the peripheral nervous system that conveys signals from the central nervous system to skeletal muscles, thereby controlling voluntary movements.

Autonomic Nervous System

The part of the nervous system that controls involuntary functions of the body, including heart rate, digestion, and respiratory rate, divided into the sympathetic and parasympathetic systems.

Parasympathetic

Part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.