Which of the following statements is FALSE?
A)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.
B)Inventory management receives extensive coverage in courses on operations management.
C)Unlike trade credit, inventory represents one of the required factors of production.
D)Under the Modigliani-Miller assumptions of perfect capital markets, the amount of inventory is irrelevant.

Question

Quizplus · Accepted Answer

The false statement is D) Under the Modigliani-Miller assumptions of perfect capital markets, the amount of inventory is irrelevant. This is because the Modigliani-Miller theorem primarily addresses the irrelevance of capital structure for a firm's value and does not directly relate to operational aspects such as inventory management.

Which of the Following Statements Is FALSE