Which of the Following Statements Is FALSE

question 39

Multiple Choice

Which of the following statements is FALSE?

• A)By relying on short-term debt the firm exposes itself to funding risk,which is the risk of incurring financial distress costs should the firm not be able to refinance its debt in a timely manner or at a reasonable rate.
• B)An ultra-conservative policy would involve financing even some of the plant,property,and equipment with short-term sources of funds.
• C)With a conservative financing policy,the firm would use short-term debt very sparingly to meet its peak seasonal needs.
• D)Short-term debt can have lower agency and "lemons" costs than long-term debt,and an aggressive financing policy can benefit shareholders.

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Definitions:

Feminist Theory

A theoretical approach that examines and advocates for change in the social, political, and economic inequalities between genders.

Social Darwinism

A theory that applies the concept of survival of the fittest to societies, justifying inequalities and competition.

Postmodernism

A complex set of ideas that emerged as a critique of modernism, emphasizing skepticism towards grand narratives, ideologies, and embracing plurality, difference, and the fragmentation of cultural norms.

Symbolic Interactionism

A sociological perspective that focuses on the significance of human communication and the symbolic nature of social interactions.