Which of the Following Statements Is FALSE

question 73

Multiple Choice

Which of the following statements is FALSE?

• A)For capital budgeting purposes,the project's financing is the incremental financing that results if the firm takes on the project.
• B)Projects with safer cash flows can support more debt before they increase the risk of financial distress for the firm.
• C)If the positive free cash flow from a project will increase the firm's cash holdings,then this growth in cash is equivalent to a reduction in the firm's leverage.
• D)The incremental financing of a project corresponds directly to the financing that is directly tied to the project.

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Definitions:

Self-Esteem

A person's personal assessment of their own value or importance.

Zone of Indifference

A concept referring to the range in which subordinates will accept and follow orders without resistance, based on their perception of the legitimacy of the command.

Enlarging

The process of increasing the scope, duties, or responsibilities of a job to provide greater variety and challenge.

Authority

The legitimate power or right to give orders, make decisions, and enforce obedience in a specific context or organization.