Which of the following statements is FALSE? Select one: a. With a discount loan, the borrower is required to pay the interest at the end of the loan period. b. A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing. c. Bridge loans are often quoted as discount loans with fixed interest rates. d. After a natural disaster, lenders may provide businesses with short-term loans to serve as bridges until they receive insurance payments or long-term disaster relief.

Which of the following statements is FALSE?

Select one:

a. Inventory helps minimize the risk that the firm will not be able to obtain an input it needs for production.

b. Firms may hold inventory because factors such as seasonality in demand mean that customer purchases do not perfectly match the most efficient production cycle.

c. Because excessive inventory uses cash, efficient management of inventory increases firm value.

d. If a firm holds too much inventory, stock-outs, the situation when a firm runs out of product, may occur, leading to lost sales.

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