Which of the Following Statements Is FALSE

question 67

Multiple Choice

Which of the following statements is FALSE?

• A)The value of a firm is equal to the amount of money the firm can raise by issuing securities.
• B)By reducing a firm's corporate tax liability,debt allows the firm to pay more of its cash flows to investors.
• C)Equity investors must pay taxes on dividends but not capital gains.
• D)For individuals,interest payments received from debt are taxed as income.

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Definitions:

Transnational Strategy

A strategic approach used by multinational corporations that seeks to achieve global efficiency, local responsiveness, and worldwide learning, leveraging global integration and local adaptation.

Scale Economies

Economic efficiencies that arise due to the increased output or size of an operation, leading to a reduction in average costs.

World Car

A term used to describe a model of car designed to meet the needs and preferences of consumers in multiple countries or regions.

Multidomestic Corporation

A company that operates in multiple countries, adapting its products and services to accommodate local preferences and legal requirements.