Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) The difference between an annuity and a perpetuity is that an annuity ends after some fixed number of payments.
• B) Most car loans, mortgages, and some bonds are annuities.
• C) A growing perpetuity is a cash flow stream that occurs at regular intervals and grows at a constant rate forever.
• D) An annuity is a stream of N equal cash flows paid at irregular intervals.

---

Definitions:

Government Subsidized Property Insurance

Insurance programs supported by the government to make coverage available and affordable, often in high-risk areas.

Insurance Costs

represent the expenses related to purchasing insurance coverage, which provides financial protection against potential future losses or damages.

Business Risk

The exposure a company or investor faces from the uncertainties that could affect the financial, operational, and reputational standing of a business.

Entrepreneurs

Individuals who initiate, manage, and take on the risks of a business or enterprise.