Which of the Following Statements Is False

question 41

Multiple Choice

Which of the following statements is false?

• A) If a company anticipates an ongoing surplus of cash, it may choose to increase its dividend payout.
• B) Seasonal sales can create large short-term cash flow deficits and surpluses.
• C) The first step in short-term financial planning is to forecast the company's future net working capital.
• D) Deficits resulting from investments in long-term projects are often financed using long-term sources of capital, such as equity or long-term bonds.

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Definitions:

Scrambled Merchandising

Selling goods and services that may be unrelated to each other and to the firm’s original business.

Corporate Chain

A series of businesses or retail outlets owned and operated by a single company.

Franchise Arrangement

A type of licensing arrangement where a franchisor allows a franchisee to use its business model and brand for a prescribed period.

Stout

A dark, thick beer with a distinctive malt flavor, originally associated with England.