Which of the Following Statements Is False

question 18

Multiple Choice

Which of the following statements is false?

• A) On the other hand, by relying on short-term debt the firm exposes itself to funding risk, which is the risk of incurring financial distress costs should the firm not be able to refinance its debt in a timely manner or at a reasonable rate.
• B) An ultra-conservative policy would involve financing even some of the plant, property, and equipment with short-term sources of funds.
• C) With a conservative financing policy, the firm would use short-term debt very sparingly to meet its peak seasonal needs.
• D) Short-term debt can have lower agency and lemons costs than long-term debt, and an aggressive financing policy can benefit shareholders.

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Definitions:

White-collar Criminals

Individuals who commit non-violent financial crimes, typically in professional or business settings, such as embezzlement or fraud.

White-collar Deviance

Non-violent crime, typically committed by individuals in professional occupations, involving deceit or the violation of trust for financial gain.

Criminal Self-image

The self-perception that an individual has of themselves as a criminal, which can influence their behavior and choices.

White-collar Deviance

Non-violent criminal activities carried out by individuals in professional or business environments, often involving financial fraud, embezzlement, or corruption.