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:

Place Value Creation

The development of benefits and values for consumers through the strategic location and distribution of products.

Dead Zones

Areas where mobile phones and other wireless devices cannot connect to the network due to geographic obstacles, remote locations, or insufficient network infrastructure.

Cellular Service

A communication service provided over a mobile network, allowing for voice calls, messaging, and data usage on mobile devices.

Market Positioning

The process of establishing and maintaining a desirable perception of a company's product or service in the market relative to competitors, focusing on unique value propositions.