Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) Because investment in permanent working capital is required so long as the firm remains in business, it constitutes a long-term investment.
• B) Because temporary working capital represents a short-term need, the firm should finance this portion of its investment with short-term financing.
• C) Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D) The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

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Definitions:

Anton Piller Order

A court order that allows the plaintiff to enter the defendant's premises to obtain evidence without prior warning.

Interlocutory Injunction

A temporary court order made to prevent an action being taken until a final decision is made by the court.

Industrial Design Act

is a law that protects the visual design of objects that are not purely utilitarian.

Copyright Act

The Copyright Act is legislation that establishes the rights of creators over their original works, including provisions for copyright protection, limitations, and the processes for enforcement.