Which of the Following Statements Is False

question 40

Multiple Choice

Which of the following statements is false?

• A) The lower the discount percentage offered, the greater the cost of forgoing the discount and using trade credit.
• B) A firm should choose to borrow using accounts payable only if trade credit is the cheapest source of funding.
• C) A firm should always pay on the latest day allowed.
• D) A firm should strive to keep its money working for it as long as possible without developing a bad relationship with its suppliers or engaging in unethical practices.

Comprehend the concepts of short-run and long-run decision making in businesses.

Interpret cost curves, including average fixed cost (AFC), average variable cost (AVC), and average total cost (ATC).

Understand the concept and calculation of marginal cost (MC).

Identify the conditions under which a business will continue to operate, shut down, or exit the industry.

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Definitions:

Generalized Anxiety Disorder

A psychological disorder characterized by persistent and excessive worry about a number of different things.

Traumatic Experience

An event that causes psychological trauma, potentially resulting in long-lasting emotional distress.

Psychological Tension

A state of mental or emotional strain resulting from demanding circumstances.

Posttraumatic Stress Disorder

A psychiatric disorder that occurs in people who have experienced or witnessed a traumatic event and exhibit symptoms such as flashbacks, nightmares, and severe anxiety.