Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B) When the yield curve is downward sloping, the interest rate on short-term debt is lower than the rate on long-term debt. In that case, short-term debt may appear cheaper than long-term debt.
• C) The value of short-term debt is less sensitive to the firm's credit quality than long-term debt; therefore, its value will be less affected by management's actions or information.
• D) Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

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Definitions:

Traditional Lifestyles

Ways of living that are deeply rooted in historical, cultural, or religious practices and often contrast with modern ways of life.

Dependence Training

Educational practices and societal expectations that encourage compliance and reliance on others within a community or family.

Interdependence Training

A method of teaching or training individuals to depend on each other, promoting teamwork and collaboration skills.

Sibling Child-rearing

The practice where siblings, rather than parents, take primary responsibility for raising children in a family.