Which of the Following Statements Is FALSE

question 19

Multiple Choice

Which of the following statements is FALSE?

• A)Investors can alter the leverage choice of the firm to suit their personal tastes either by borrowing and reducing leverage or by holding bonds and adding more leverage.
• B)On the market value balance sheet the total value of all securities issued by the firm must equal the total value of the firm's assets.
• C)The market value balance sheet captures the idea that value is created by a firm's choice of assets and investments.
• D)One application of MM Proposition I is the useful device known as the market value balance sheet of the firm.

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Definitions:

Graphic Rating Scale

A method for assessing performance that involves marking an individual's level of achievement along a linear scale.

360-degree Feedback

A performance appraisal method where employees receive confidential, anonymous feedback from the people who work around them, including peers, managers, and direct reports.

Perceptual Errors

Mistakes in judgment or interpretation made due to the subjective nature of perception.

Appraisal Accuracy

The degree to which performance evaluations accurately reflect the true performance levels of employees, free from biases or errors.