Which of the Following Statements Is False

question 37

Multiple Choice

Which of the following statements is false?

• A) By relying on short-term debt the firm exposes itself to funding risk, which is the risk of incurring financial distress costs should the firm not be able to refinance its debt in a timely manner or at a reasonable rate.
• B) An ultra-conservative policy would involve financing even some of the plant, property, and equipment with short-term sources of funds.
• C) With a conservative financing policy, the firm would use short-term debt very sparingly to meet its peak seasonal needs.
• D) Short-term debt can have lower agency and lemons costs than long-term debt, and an aggressive financing policy can benefit shareholders.

Understand the role of performance appraisal in talent management and career progression.

Identify common biases and errors in performance appraisal and strategies to overcome them.

Understand the impact of performance appraisals on organizational goals and employee development.

Comprehend the process and benefits of 360-degree feedback.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Fair Value Enterprise Method

A valuation approach that estimates the value of an entire enterprise based on the fair value of its assets and liabilities.

Equity Method

An accounting technique used by companies to record their investments in other companies, based on the equity or ownership stake in those companies.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life, applicable to intangible assets.