Which of the Following Statements Is Inaccurate with Respect to the Total

question 13

Multiple Choice

Which of the following statements is inaccurate with respect to the total asset turnover ratio?

• A)The ratio is calculated as sales revenues divided by total assets at year-end.
• B)The ratio is decreased when additional plant and equipment is purchased.
• C)A high ratio implies efficient management of assets.
• D)The ratio is decreased when additional inventory is purchased.

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Definitions:

Majority Vote

A voting requirement where more than half of the votes cast by persons entitled to vote is needed to make a decision or pass a resolution.

MBCA

Model Business Corporation Act, a set of model laws implemented by some states to regulate the affairs of corporations.

Guth V. Loft

A notable court case dealing with corporate opportunity doctrine, establishing parameters for fiduciary duty and conflicts of interest within corporations.

Pepsi-Cola Syrup

A concentrated formula used to make Pepsi-Cola beverage, often mixed with carbonated water.