Which of the Following Statements Is False

question 12

Multiple Choice

Which of the following statements is false?

• A) Financial transactions are not sources of value, but merely serve to adjust the timing and risk of the cash flows to best suit the needs of the firm or its investors.
• B) The NPV of trading a security in a normal market is zero.
• C) We cannot separate a firm's investment decision from the decision of how to finance the investment.
• D) In normal markets, trading securities neither creates nor destroys value.

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Definitions:

Honesty

A moral character trait that involves being truthful, transparent, and free from deceit or theft.

Empowerment

The process of giving power or authority to individuals or groups, enabling them to make decisions, take actions, and control their own destinies.

Participative Leadership

A leadership approach that encourages the participation of team members in decisions, promoting teamwork and shared accountability.

High-performance Culture

An organizational culture characterized by an intense focus on performance metrics, excellence, teamwork, and achieving superior outcomes.