Which of the Following Statements Is FALSE

question 56

Multiple Choice

Which of the following statements is FALSE?

• A)The most important insight regarding capital structure goes back to Modigliani and Miller: With perfect capital markets,a firm's security choice alters the risk of the firm's equity,but it does not change its value or the amount it can raise from outside investors.
• B)When agency costs are significant,short-term debt may be the most attractive form of external financing.
• C)Too much debt can motivate managers and equity holders to take excessive risks or over-invest in a firm.
• D)Of all the different possible imperfections that drive capital structure,the most clear-cut,and possibly the most significant,is taxes.

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Definitions:

English Immersion

A method of teaching English to speakers of other languages by exclusively using English in instruction, promoting rapid language acquisition.

Bilingual Education

An educational approach that involves teaching academic content in two languages, typically one being the native language and the other a secondary language.

Native Language Program

Educational initiatives or curricula designed to preserve, teach, and promote the use of indigenous languages among native populations.

Acculturation Approach

A method that addresses how individuals adapt to new cultural contexts, including assimilation, integration, separation, and marginalization strategies.