Which of the Following Statements Is False

question 9

Multiple Choice

Which of the following statements is false?

• A) Under the Modigliani-Miller assumptions of perfect capital markets, the amounts of payables and receivables are irrelevant.
• B) If the firm can obtain a bank loan at a lower interest rate, it would be better off borrowing at the lower rate and using the cash proceeds of the loan to take advantage of the discount offered by the supplier.
• C) Collection float is the amount of time it takes before payments to suppliers actually result in a cash outflow for the firm.
• D) The credit that the firm is extending to its customers is known as trade credit.

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Definitions:

Culturally Hegemonic

Relating to or denoting the dominance of one cultural group over others, particularly in influencing norms and values.

Socially Organized

The way in which society is structured and functions through established patterns of social relationships and institutions.

Sexual Orientation

An individual’s sexual and emotional attraction to a person of a particular sex.

Sex Acts

Physical activities that involve sexual pleasure or intercourse, often with the intention of sexual gratification.