Which of the Following Statements Is False

question 33

Multiple Choice

Which of the following statements is false?

• A) The firm deducts a fraction of the investments in plant, property, and equipment each year as depreciation.
• B) If securities are fairly priced, the net present value of a fixed set of cash flows is independent of how those cash flows are financed.
• C) Sunk cost fallacy is a term used to describe the tendency of people to ignore sunk costs in capital budgeting analysis.
• D) A good rule to remember is that if our decision does not affect a cash flow then the cash flow should not affect our decision.

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Definitions:

Thomas Hobbes

An English philosopher best known for his work "Leviathan," where he discusses the structure of society and legitimate government, and argues for a social contract and rule by an absolute sovereign.

Social Hierarchies

The arrangement of individuals or groups in a society according to status, wealth, or some other criterion.

Functionalism

An approach in sociology that considers society as an intricate system where its elements operate in harmony to encourage cohesion and stability.

Differential Status

The varied positions individuals hold in society, which are distinguished by differences in prestige, wealth, or power.