Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) Under the Modigliani-Miller assumptions of perfect capital markets, the amount of inventory is irrelevant.
• B) Unlike trade credit, inventory represents one of the required factors of production.
• C) It is the firm's financial manager who must arrange for the financing necessary to support the firm's inventory policy and who is responsible for ensuring the firm's overall profitability.
• D) Inventory management receives extensive coverage in courses on operations management.

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Definitions:

Maturity Value

The amount payable to the investor at the end of a debt instrument's life.

Foreign Exchange Gain

The profit obtained from holding or trading foreign currencies due to changes in exchange rates.

Exchange Rate

The price of one currency in terms of another currency.

Accounts Receivable-Kagome

An account representing money owed to Kagome (presumably a company) by its customers for goods or services that have been delivered but not yet paid for.