Which of the following statements is false? The costs...

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Finance

Which of the following statements is false?

The costs involved with greater investments in current assets are zero if the increase is funded with short-term debt.
A cash out is less likely to happen to a firm with high carrying costs than one with high shortage costs.
Order costs increase with lesser investments in current assets.
With a flexible short-term financial policy, shortage costs will be minimized.
Carrying costs increase with greater investments in current assets.

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