Which of the following statements is FALSE?
A) The matching principle indicates that the firm should finance permanent working capital with short-term sources of funds.
B) Following the matching principle should, in the long run, help minimize a firm's transaction costs.
C) In a perfect capital market, the choice of financing is irrelevant; thus how the firm chooses to finance its short-term cash needs cannot affect value.
D) A portion of a firm's investment in its accounts receivable and inventory is temporary and results from seasonal fluctuations in the firm's business or unanticipated shocks.
A
Explanation: A) The matching principle indicates that the firm should finance permanent working capital with long-term sources of funds.
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In organizations, a performance management system is implemented:
A) whenever company goals are not met. B) when coaching and feedback have failed. C) on a continuous cycle. D) once per year.
Managers who believe the customer is the company's only true "profit center" consider the traditional organization chart to be obsolete
Indicate whether the statement is true or false