If any, which of the following statements is FALSE? A. Capital Budgeting is the process of planning and managing a firm's long-term investments where managers identify investments that are worth more than they cost to acquire. B. Capital Structure is the mix of debt and equity maintained by a firm to finance operations, where the firm decides how much to borrow and what the cheapest sources of funds are. C. Working Capital Management is the day-to-day management of finances that determines how much cash and inventory should be kept on hand, whether to sell on credit to customers, and how to obtain short-term financing. D. None of the above statements is false.

Question

Ice Queen

Business

28 July, 16:03

If any, which of the following statements is FALSE? A. Capital Budgeting is the process of planning and managing a firm's long-term investments where managers identify investments that are worth more than they cost to acquire. B. Capital Structure is the mix of debt and equity maintained by a firm to finance operations, where the firm decides how much to borrow and what the cheapest sources of funds are. C. Working Capital Management is the day-to-day management of finances that determines how much cash and inventory should be kept on hand, whether to sell on credit to customers, and how to obtain short-term financing. D. None of the above statements is false.

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Answers (1)

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Felipe Lin · Answer 1

D. None of the above statements is false.

Explanation:

A. Capital budgeting is used to make the long term decision based on the investments rather than the short term investment

Hence, option A is correct

B. The capital structure is a combination of the debt and equity which defined each term

Hence, option B is correct

C. The working capital shows a difference between the current assets and the current liabilities

So, this is also a correct statement

Therefore, option D is correct