Which of the Following Statements Is FALSE

question 49

Multiple Choice

Which of the following statements is FALSE?

• A)When a firm faces financial distress,shareholders have an incentive not to invest and to withdraw money from the firm if possible.
• B)Because top managers often hold shares in the firm and are hired and retained with the approval of the board of directors,which itself is elected by shareholders,managers will generally make decisions that increase the value of the firm's equity.
• C)An over-investment problem occurs when shareholders have an incentive to invest in risky positive-NPV projects.
• D)A negative-NPV project destroys value for the firm overall.

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Definitions:

Child and Family Services Act

Legislation aimed at protecting the welfare and rights of children and families, often by providing services and support for children's safety and well-being.

Assisted Human Fertility Act

Legislation aimed at regulating the use of reproductive technologies and treatments to support individuals in achieving pregnancy.

In Vitro Fertilization

A medical procedure whereby an egg is fertilized by sperm outside the body, in a laboratory dish, and then the embryo is implanted in the uterus.

Surrogacy

When a woman becomes pregnant and gives birth to a baby in order to give it to another person or couple.