Which of the Following Statements Is False

question 52

Multiple Choice

Which of the following statements is false?

• A) Depreciation expenses have a positive impact on free cash flow.
• B) Free Cash Flow = (Revenues - Costs - Depreciation) × (1 - τ_c) - Capital Expenditures - ΔNWC + τ_c × Depreciation.
• C) The firm cannot use its earnings to buy goods, pay employees, fund new investments, or pay dividends to shareholders.
• D) The depreciation tax shield is the tax savings that results from the ability to deduct depreciation.

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Definitions:

Global Reporting Initiative

Promotes environmental, economic and social responsibility.

Environmental Responsibility

The duty that individuals and organizations have to act in ways that protect and benefit the environment.

Economic Responsibility

denotes a company's or individual's obligation to make decisions that positively impact the economic well-being of society, including prudent use of resources and fair economic practices.

C.K. Prahalad

An influential business thinker known for his work on core competencies and the bottom of the pyramid concept.