Which of the Following Statements Is False

question 22

Multiple Choice

Which of the following statements is false?

• A) Under the Modigliani-Miller assumptions of perfect capital markets, the amounts of payables and receivables are irrelevant.
• B) One factor that contributes to the length of a firm's receivables and payables is the delay between the time a bill is paid and the cash is actually received.
• C) Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.
• D) The credit that the firm is extending to its customer is known as trade credit.

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Definitions:

Fifth Worker

A term possibly referring to an additional employee in a series or sequence, but without specific context, the exact interpretation may vary.

Derived Demand

A demand for a factor of production or intermediate good that occurs as a result of the demand for another good or service, for example, the demand for steel being derived from the demand for automobiles.

Lithium Ion Batteries

Rechargeable batteries that use lithium ions as the primary component of their electrolyte, known for their high energy density and used in various electronic devices and electric vehicles.

Tesla Automobiles

Tesla Automobiles refers to electric vehicles and clean energy products manufactured by Tesla, Inc., an American company leading in electric vehicle production.