Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Under the Modigliani-Miller assumptions of perfect capital markets, the amount of inventory is irrelevant.
• B) Unlike trade credit, inventory represents one of the required factors of production.
• C) It is the firm's financial manager who must arrange for the financing necessary to support the firm's inventory policy and who is responsible for ensuring the firm's overall profitability.
• D) Inventory management receives extensive coverage in courses on operations management.

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Definitions:

Specialization

A method of production where a business or area focuses on the production of a limited scope of goods or services to gain greater degrees of productive efficiency.

Bongos

A pair of small, drum-like musical instruments connected in the center by a bridge, typically played with the hands.

Frisbees

Flat, circular flying discs often used for games and sports.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade possibilities.