Examine the Words And/or Phrases Below and Determine the Relationship

question 3

Multiple Choice

Examine the words and/or phrases below and determine the relationship among the majority of words/phrases. Choose the option that does not fit the pattern.

• A) carbon
• B) aluminum
• C) oxygen
• D) iron

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Definitions:

Operating Capacity

The maximum output a company can produce under normal working conditions.

Earnings Retention Ratio

The proportion of net income that a company retains to reinvest in its business rather than distributing it to shareholders as dividends.

Marble

A metamorphic rock composed mainly of recrystallized carbonate minerals, commonly used in sculpture and as a building material.

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.