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:

Knights of Labor

A significant labor organization in the United States during the 19th century that sought to organize workers across different industries to improve working conditions.

Unions

Organizations formed by workers to protect their rights, negotiate collective contracts, and provide support to members on employment matters.

National Labor Union

A historic labor federation in the United States, founded in 1866, that aimed to unify workers across different trades to fight for labor reforms.

Trades

Occupations that typically require specialized skills and knowledge, learned through on-the-job experience or formal training, often involving manual work and craftsmanship.