Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
• C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
• D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

---

Definitions:

Emergency Care

Medical services provided for illness or injury requiring immediate attention to prevent a serious threat to health, life, function, or wellbeing.

Phenotype

The collection of traits visible in a person that emerge from how their genetic code interacts with their surroundings.

Genes

Sequences of DNA or RNA that code for proteins and determine the inherited traits and characteristics of an organism.

Umbilical Cord

The flexible cordlike structure connecting a fetus to the placenta, transporting nutrients and oxygen to and removing waste from the developing baby.