Which one of the following statements is false?
A) Financial executives must design financial securities to meet the needs of the firm and its investors.
B) Financial instruments are subject to full disclosure requirements.
C) The design of financial instruments is greatly constrained by law and regulation.
D) Financial instruments are claims against a company's cash flows and assets.
E) None of the above.

Question

Quizplus · Accepted Answer

While financial instruments are subject to some legal and regulatory constraints, their design is not greatly constrained by law and regulation. Financial executives have a significant amount of flexibility in designing financial instruments to meet the needs of the firm and its investors.

Which One of the Following Statements Is False