Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)The Check Clearing for the 21st Century Act (Check 21),which became effective on October 28,2004,eliminated the disbursement float due to the check-clearing process.
• B)Trade credit is,in essence,a loan from the selling firm to its customer.
• C)The accounts receivable balance represents the amount that a firm owes its suppliers for goods that it has received but for which it has not yet paid.
• D)Providing financing at below-market rates is an indirect way to lower prices for only certain customers.

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Definitions:

Venture Capital Funds

Financial funds that invest in startups and small businesses with high growth potential in exchange for equity.

Start-up Companies

New business ventures that are in the initial phase of operations and typically characterized by innovative products or services and high growth potential.

Short-term Bank Loans

Loans offered by banks to be repaid within a short timeframe, typically less than a year, to meet immediate financial needs.

Secured

Pertaining to assets or loans that are protected by collateral to ensure repayment or mitigate risk.