Which of the Following Statements Is FALSE

question 65

Multiple Choice

Which of the following statements is FALSE?

• A)It is the firm's financial manager who must arrange for the financing necessary to support the firm's inventory policy and who is responsible for ensuring the firm's overall profitability.
• B)Inventory management receives extensive coverage in courses on operations management.
• C)Unlike trade credit, inventory represents one of the required factors of production.
• D)Under the Modigliani-Miller assumptions of perfect capital markets, the amount of inventory is irrelevant.

---

Definitions:

Acquisition

The act of obtaining control of another company by purchasing its shares or assets.

Merger

The act of amalgamating two distinct entities into a single organization, often aimed at enhancing competitive position and operational efficiency.

Acquiring Firm

A firm that acquires or gains control over another business by means of a merger, acquisition, or takeover.

Parent

The controlling company in a group of companies, which owns a controlling interest in one or more subsidiaries.