Which of the Following Statements Is FALSE

question 7

Multiple Choice

Which of the following statements is FALSE?

• A)The data show a clear preference for equity as a source of external financing for the total population of U.S.firms.
• B)Debt as a fraction of firm value has varied in a range from 30-45% for the average firm.
• C)Capital expenditures greatly exceed firms' external financing,implying that most investment and growth is supported by internally generated funds,such as retained earnings.
• D)Firms in growth industries like biotechnology or high technology carry very little debt,whereas airlines,auto makers,utilities,and financial firms have high leverage ratios.

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Definitions:

Misunderstandings

Failures to understand something correctly, leading to errors in judgment or conflicts.

Communication Competency

The ability to effectively convey, receive, and interpret messages, information, and ideas, both verbally and non-verbally.

Describing Skill

The capability to articulate the characteristics, features, or qualities of an object, situation, or individual clearly and accurately.

Active Listening

The practice of fully concentrating on what is being said, rather than passively hearing the speaker, for better understanding and empathy.