Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)Creditors often place restrictions on the actions that the firm can take.Such restrictions are referred to as debt covenants.
• B)Covenants are often designed to prevent management from exploiting debt holders,so they may help to reduce agency costs.
• C)Agency costs are smallest for long-term debt.
• D)Covenants may limit the firm's ability to pay large dividends or the types of investments that the firm can make.

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Definitions:

Summative Evaluations

Comprehensive assessments conducted at the conclusion of an instructional period, aiming to evaluate overall learning outcomes and effectiveness.

Kirkpatrick's Hierarchical Model

A widely used framework for evaluating training programs, based on four levels: reaction, learning, behavior, and results.

Behavioural Changes

Modifications in an individual's actions or reactions as a result of learning or intervention.

Training Initiative

A strategic program or set of activities designed to improve skills, knowledge, and competencies within an organization.