Which of the Following Statements Is False

question 43

Multiple Choice

Which of the following statements is false?

• A) When following a conservative financing policy, a firm would use long-term sources of funds to finance its fixed assets, permanent working capital, and some of its seasonal needs.
• B) An aggressive financing policy also increases the possibility that managers of the firm will use this excess cash nonproductively-for example, on perquisites for themselves.
• C) A firm could finance its short-term needs with long-term debt, a practice known as a conservative financing policy.
• D) To implement a conservative financing policy effectively, there will necessarily be periods when excess cash is available-those periods when the firm requires little or no investment in temporary working capital.

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Definitions:

Sympathetic Arousal

The activation of the sympathetic nervous system, leading to physiological changes such as increased heart rate, blood pressure, and energy release, often in response to stress or danger.

Tend-And-Befriend Response

under stress, people (especially women) often provide support to others (tend) and bond withand seek support from others (befriend).

Psychoneuroimmunology

The study of how psychological, neural, and endocrine processes together affect the immune system and resulting health.

General Adaptation Syndrome

A model describing the body's short-term and long-term reactions to stress, including stages of alarm, resistance, and exhaustion.