Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A)Calculating the precise present value of financial distress costs is a relatively straightforward process.
• B)Two key qualitative factors determine the present value of financial distress costs: (1)the probability of financial distress and (2)the magnitude of the costs after a firm is in distress.
• C)Technology firms are likely to incur high costs when they are in financial distress,due to the potential for loss of customers and key personnel,as well as a lack of tangible assets that can be easily liquidated.
• D)The magnitude of the financial distress costs will depend on the relative importance of the sources of these costs and is likely to vary by industry.

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Definitions:

Attitudes

A learned tendency to evaluate things in a certain way, which can include people, issues, objects, or events.

Values

Core beliefs or principles that guide an individual's behavior and decision-making, reflecting what is important to them.

Affective Component

The emotional aspect of an attitude or response, reflecting feelings or emotions associated with a particular object, person, or situation.

Behavioral Component

The aspect of attitudes that involves intentions, actions, or observable responses in relation to an object or situation.