Which of the Following Statements Is Not Correct

question 26

Multiple Choice

Which of the following statements is not correct?

• A) Prior to the late 1950s and early 1960s,finance was taught primarily as a descriptive,institutional subject viewed more from the standpoint of an outsider than from that of the management of the firm.
• B) History has shown that the types of investments and methods used to analyze investment opportunities have changed as the attitudes of both investors and regulators have changed.
• C) When managerial finance emerged as a separate field of study in the early 1900s,the emphasis was on evaluation and analysis of investments because the economy was in excellent condition at the time,so most individuals had large sums of funds to invest in corporate securities.
• D) One of the responsibilities of the financial manager is to help determine which assets the firm should acquire and the best way to finance those assets.
• E) Sustainability is a long-run concept that focuses on improving the quality of life of all stakeholders,both current and future.

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Definitions:

Stock Exchange

A marketplace where securities, including stocks and bonds, are bought and sold.

Designated Securities

These are specific securities that have been selected for a special purpose, such as being eligible collateral for a loan or part of a regulated market segment.

Moral Hazard

The situation where one party to an agreement can take risks because they know that another party bears the consequences of those risks, often seen in insurance and finance.

Unfavorable Information

Data or news that negatively impacts the valuation or perception of a company or investment.