Which of the Following Statements Is False

question 69

Multiple Choice

Which of the following statements is false?

• A) A serious concern for large corporations is that managers may make large, unprofitable investments.
• B) While overspending on personal perks may be a problem for large firms, these costs are likely to be small relative to the overall value of the firm.
• C) Some financial economists explain a manager's willingness to engage in negative-NPV investments as empire building.
• D) While ownership is often diluted for small, young firms, ownership typically becomes concentrated over time as a firm grows.

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Definitions:

Central Tendency

Statistical measures that describe the center or typical value of a dataset, including mean, median, and mode.

Expected Value

The weighted average of all possible outcomes of a random variable, with weights being their respective probabilities of occurrence.

Weighted Average

A calculation that takes into account the different weights or importance of some elements in a data set, providing a mean value that reflects these weights.

Standard Deviation

A numerical indicator that calculates the degree of spread or deviation of data points from their average.