Which of the Following Statements Is False

question 36

Multiple Choice

Which of the following statements is false?

• A) Chief among the costs associated with size is that larger firms are more difficult to manage.
• B) For most investors an investment in the stock market is a zero-NPV investment.
• C) Diversification benefits are by far the most common justification that bidders give for the premium they pay for a target.
• D) An acquirer might be able to add economic value, as a result of an acquisition, that an individual investor cannot add.

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Definitions:

Dispositional Influences

Refers to personality traits that influence behavior and actions in individuals.

Situational Influences

External factors that can affect an individual's behavior and decisions in a given context, such as social norms and environmental cues.

Self-Serving Bias

Self-serving bias is the common human tendency to attribute positive events to one's own character but attribute negative events to external factors, thereby protecting self-esteem.

Personal Credit

The ability of an individual to borrow money or access goods or services with the understanding that payment will be made in the future.