Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) Under the Modigliani-Miller assumptions of perfect capital markets, the amounts of payables and receivables are irrelevant.
• B) If the firm can obtain a bank loan at a lower interest rate, it would be better off borrowing at the lower rate and using the cash proceeds of the loan to take advantage of the discount offered by the supplier.
• C) Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.
• D) The credit that the firm is extending to its customers is known as trade credit.

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Definitions:

Personality Differences

The variations among individuals in terms of their emotional, interpersonal, experiential, attitudinal, and motivational behaviors.

Experimental Groups

In research, these are groups of subjects exposed to the independent variable or treatment, allowing researchers to assess the effect of the variable on outcomes.

Placebo

A substance with no therapeutic effect, used as a control in testing new drugs.

Drug-Treatment Study

A research study designed to evaluate the safety and effectiveness of medications or drug treatments in preventing, diagnosing, or treating diseases or conditions.