Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A) Chief among the costs associated with size is that larger firms are more difficult to manage.
• B) For most investors an investment in the stock market is a zero-NPV investment.
• C) Diversification benefits are by far the most common justification that bidders give for the premium they pay for a target.
• D) An acquirer might be able to add economic value, as a result of an acquisition, that an individual investor cannot add.

---

Definitions:

Pleurisy

An inflammation of the pleura, the membrane surrounding the lungs, causing sharp chest pain with breathing.

Asbestosis

A chronic lung disease caused by inhaling asbestos fibers, characterized by lung tissue scarring and shortness of breath.

Chronic Bronchitis

A long-term inflammation of the bronchi in the lungs, characterized by coughing and mucus production.

Bronchi

The main passageways into the lungs, which branch off from the trachea and allow air to travel in and out of the lungs.