Which of the Following Statements Is False

question 20

Multiple Choice

Which of the following statements is false?

• A) Although indirect costs of bankruptcy are difficult to measure accurately, they are typically much smaller than the direct costs of bankruptcy.
• B) Bankruptcy protection can be used by management to delay the liquidation of a firm that should be shut down.
• C) Because many aspects of the bankruptcy process are independent of the size of the firm, the costs are typically higher, in percentage terms, for smaller firms.
• D) Aside from the direct legal and administrative costs of bankruptcy, many other indirect costs are associated with financial distress (whether or not the firm has formally filed for bankruptcy).

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Definitions:

McClelland's Theory

A motivation theory which posits that people are motivated by three primary needs: achievement, affiliation, and power.

Complex Tasks

Activities that involve multiple steps, variables, and/or require a high level of skill and coordination to complete.

Hygiene Factors

Elements related to the work environment, such as company policies, supervision, salary, and working conditions, that can lead to job dissatisfaction if they are inadequate, but not necessarily to job satisfaction if they are adequate.

Job Satisfaction

The level of contentment employees feel toward their jobs, influenced by factors like the nature of the work, the working environment, and compensation.