Which of the Following Statements Is NOT True

question 77

Multiple Choice

Which of the following statements is NOT true?

• A) If cash balances become too small, it may lead the firm to bankruptcy.
• B) The lower the cash balance, the better the ability of a firm to meet its short-term financial obligations.
• C) The level of the cash balance has no bearing on a firm's ability to meet its short-term financial obligations.
• D) The downside of holding too much cash is that the returns on cash are low.

---

Definitions:

Freshwater Fish

Fish species that spend most or all of their lives in freshwater environments like rivers and lakes, as opposed to saltwater habitats.

Marine Fish

Fish species that live in oceanic environments as opposed to freshwater habitats, often adapting to saltwater conditions.

Solutes

Substances dissolved in a solvent to form a solution, often referring to solids dissolved in liquids.

Nutritional Value

Nutritional value refers to the content of essential nutrients in food, such as vitamins, minerals, and proteins, important for supporting life and health.