The Six Principles of Finance Include All of the Following

question 96

Multiple Choice

The six principles of finance include all of the following except:

• A)Money has a time value.
• B)Higher returns are expected for taking on more risk
• C)Diversification of investments can reduce risk
• D)Financial markets are efficient in pricing securities
• E)all of the above are included in the six principles.

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Definitions:

Contingency Approaches

Management theories suggesting that the best leadership or organizational practices depend on the specifics of the situation.

Contingency Model

A leadership theory that suggests the effectiveness of a leadership style is contingent upon the situation, including the leader's capability and the task characteristics.

Leadership Styles

Various methods or approaches adopted by leaders to guide, direct, and influence the work and behavior of others.

Ethical Problems

Moral dilemmas or issues that arise in a business or professional setting, requiring consideration of right and wrong conduct.