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Which of the Following Statements Is/are False

question 20

Multiple Choice

Which of the following statements is/are false?
i. Return on investment encourages managers to take a long-term view of corporate performance.
ii. Return on investment may encourage managers to defer the replacement of worn assets.
iii. Return on investment may encourage managers to increase expenditure on research and development.


Definitions:

Exculpatory Clause

A provision in a contract that absolves one party of liability for damages or losses arising under the agreement.

Legally Enforceable

Referring to agreements or obligations that have the backing of and can be upheld by law.

Sustained Injury

refers to a physical or psychological harm that occurs and is maintained or prolonged over a period of time as a result of an accident, negligence, or intentional act.

Procedural Unconscionability

A legal doctrine referring to a situation where the manner in which a contract was formed is deemed unjust, due to a significant disparity in power or a lack of fairness.

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