Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)Because investment in permanent working capital is required so long as the firm remains in business,it constitutes a long-term investment.
• B)Because temporary working capital represents a short-term need,the firm should finance this portion of its investment with short-term financing.
• C)Temporary working capital is the difference between the lowest level of investment in short-term assets and the permanent working capital investment.
• D)The matching principle states that short-term needs should be financed with short-term debt and long-term needs should be financed with long-term sources of funds.

---

Definitions:

Blastocyst

An early stage of embryonic development in mammals characterized by a fluid-filled cavity and distinct cell layers, preceding implantation in the uterus.

Embryo

An early stage of development in multicellular organisms following fertilization, before fetal development begins.

Oocyte

A female gametocyte or germ cell involved in reproduction; in humans, an oocyte is an immature egg cell.

Viable

Capable of surviving or living successfully, especially with reference to living organisms or concepts that can be practically implemented.