Which of the Following Statements Is FALSE

question 82

Multiple Choice

Which of the following statements is FALSE?

• A)Financial transactions are not sources of value,but merely serve to adjust the timing and risk of the cash flows to best suit the needs of the firm or its investors.
• B)The NPV of trading a security in a normal market is zero.
• C)We cannot separate a firm's investment decision from the decision of how to finance the investment.
• D)In normal markets,trading securities neither creates nor destroys value.

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Definitions:

Decision Making

The process of identifying and choosing alternatives based on the values and preferences of the decision maker.

Positive Feedback

A type of feedback that reinforces and encourages the behavior or performance that led to it, often used to motivate individuals or affirm strategies.

Producing Scarves

The process of creating scarves through various methods such as knitting, weaving, or printing, typically involving textiles.

Organization

A group of people working together in a structured and coordinated fashion to achieve a set of goals or objectives.