Question
Which of the following is not true? Group of answer choices None of the above (all the other options are correct). The question of what
Which of the following is not true?
Group of answer choices
None of the above (all the other options are correct).
The question of what project should be taken and what project shouldn't based on what project will create value (i.e. make money) for the firm and what project will not, is called capital budgeting.
Issuing new equity results in the purchaser of these equities to hold shares in the company. This allows these purchasers to have voting rights (i.e. have a say) in the firm's decision-making process.
The process in which the firm decides how it will finance its business activities (that is, whether it will borrow money from creditors or instead choose to issue equity) is called working capital management.
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