Which of the Following Statements Is FALSE

question 40

Multiple Choice

Which of the following statements is FALSE?

• A)A serious concern for large corporations is that managers may make large,unprofitable investments.
• B)While overspending on personal perks may be a problem for large firms,these costs are likely to be small relative to the overall value of the firm.
• C)Some financial economists explain a manager's willingness to engage in negative-NPV investments as empire building.
• D)While ownership is often diluted for small,young firms,ownership typically becomes concentrated over time as a firm grows.

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Definitions:

Open Terms

Contractual conditions that are not specifically defined or agreed upon at the inception of an agreement, allowing for future negotiation and flexibility.

Common Law

A legal system based on court decisions and precedents rather than statutory laws.

Modified

Changed or altered from the original form, often to improve functionality or performance.

Temporary Use

The limited-time utilization of an asset or service for a specific period or purpose.