Which of the following statements is FALSE?
A)Under the Modigliani-Miller assumptions of perfect capital markets,the amount of inventory is irrelevant.
B)Unlike trade credit,inventory represents one of the required factors of production.
C)It is the firm's financial manager who must arrange for the financing necessary to support the firm's inventory policy and who is responsible for ensuring the firm's overall profitability.
D)Inventory management receives extensive coverage in courses on operations management.

Question

Quizplus · Accepted Answer

Under the Modigliani-Miller assumptions, the focus is on capital structure irrelevance, not inventory levels. Inventory is not addressed in their theory.

Which of the Following Statements Is FALSE