Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)Financing part or all of the permanent working capital with short-term debt is known as an aggressive financing policy.
• B)When the yield curve is downward sloping,the interest rate on short-term debt is lower than the rate on long-term debt.In that case,short-term debt may appear cheaper than long-term debt.
• C)The value of short-term debt is less sensitive to the firm's credit quality than long-term debt;therefore,its value will be less affected by management's actions or information.
• D)Permanent working capital is the amount that a firm must keep invested in its short-term assets to support its continuing operations.

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Definitions:

Observational Learning

Observational learning is the process of acquiring new behaviors or knowledge by watching and imitating others, a key concept of social learning theory.

Learned Helplessness

Learned helplessness is a condition in which a person suffers from a sense of powerlessness, arising from a traumatic event or persistent failure to succeed. It is the learned belief that one's actions have no effect on the environment.

Seligman

Martin E.P. Seligman, a psychologist known for his work on positive psychology, learned helplessness, and theories on happiness and well-being.

Symptoms

Physical or mental features that are regarded as indicating a condition or disease.