Which of the Following Statements Is FALSE

question 81

Multiple Choice

Which of the following statements is FALSE?

• A)A capital budget lists the projects and investments that a company plans to undertake during the coming year.
• B)Income Tax = EBIT × (1 - τ_c).
• C)When sales of a new product displace sales of an existing product,the situation is often referred to as cannibalization.
• D)Overhead expenses are often allocated to the different business activities for accounting purposes.

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Definitions:

Risk Response Plan

A documented strategy detailing how to deal with identified risks, including ways to mitigate, avoid, transfer, or accept them.

Project Risk

Project risk involves the potential for unforeseen events or conditions to impact the project's timeline, performance, or budget negatively.

Project Complexity

A measure of the number of variables, uncertainties, and potential influences involved in a project, affecting its execution and outcome.

Positive Correlation

A statistical relationship where two variables move in the same direction, indicating that when one variable increases, the other one also increases, and vice versa.