Which One of the Following Statements Is NOT True

question 37

Multiple Choice

Which one of the following statements is NOT true?

• A) The correct way to annualise an interest rate is to compute the effective annual interest rate (EAR).
• B) The APR is the annualised interest rate using simple interest.
• C) The correct way to annualise an interest rate is to compute the annual percentage rate (APR).
• D) You can find the interest rate per period by dividing the quoted annual rate by the number of compounding periods.

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Definitions:

Primary Value Chain

The sequence of activities an organization undertakes to develop, produce, and sell its products or services, generating value for customers.

Production Function

An economic model expressing the relationship between inputs (like labor, capital) used in production and the output of those production processes.

Differentiation

The process of distinguishing a product or service from others, to make it more attractive to a particular target market.

Product Innovation

The development of new or significantly improved goods or services to meet consumer needs or market demands.