Which of the Following Statements Is False

question 67

Multiple Choice

Which of the following statements is false?

• A) Personal taxes have the potential to offset some of the corporate tax benefits of leverage.
• B) The actual interest tax shield depends on the reduction in the total taxes (both corporate and personal) that are paid.
• C) The amount of money an investor will pay for a security ultimately depends on the benefits the investor will receive-namely, the cash flows the investor will receive before all taxes have been paid.
• D) Just like corporate taxes, personal taxes reduce the cash flows to investors and diminish firm value.

---

Definitions:

Economic Relations

Pertains to the ways in which economic forces, such as production, distribution, and consumption of goods and services, influence social structures and individual interactions.

Base

In Marxist theory, the base refers to the economic foundation of a society, including the means of production and relations of production, which determines the superstructure.

Objectification

involves treating a person as an object or commodity, disregarding their personality or dignity, often seen in the context of sexual objectification.

Material Objects

Physical items or entities that occupy space and can be perceived by the senses.