Which of the Following Statements Is FALSE

question 1

Multiple Choice

Which of the following statements is FALSE?

• A)The lower the discount percentage offered, the greater the cost of forgoing the discount and using trade credit.
• B)A firm should always pay on the latest day allowed.
• C)A firm should strive to keep its money working for it as long as possible without developing a bad relationship with its suppliers or engaging in unethical practices.
• D)A firm should choose to borrow using accounts payable only if trade credit is the cheapest source of funding.

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Definitions:

Realistic Conflict Theory

A social psychological model that describes how conflict and competition between groups arise over actual competition for limited resources.

Prejudice

Preconceived opinions or judgments about individuals or groups based on biases without factual basis.

Scarce Resources

Economic term for assets, materials, or substances that are in limited supply in relation to their demand.

Social Identity

Refers to how individuals categorize themselves and others into groups, such as social class, family, race, and how these categories form part of an individual's self-concept.