Question

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.

Answer 1

D. None of the above statements is false.

Step-by-step 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