Which of the Following Statements Regarding Capital Intensity Is NOT

question 119

Multiple Choice

Which of the following statements regarding capital intensity is NOT true?

• A)Capital intensity can be a prohibitive investment for low-volume operations.
• B)Decreased amounts of automation increase capital intensity.
• C)Automation refers to a system or piece of equipment that is self-regulating and self-acting.
• D)Leasing is a method to acquire equipment while defraying financial risk.

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Definitions:

Security Agreement

A written agreement that creates a security interest.

Purchase Money Security Interest (PMSI)

A special type of security interest that allows creditors to obtain priority in a debtor's collateral, provided the credit was used to purchase the collateral.

Perfected

The state of a security interest when the secured party has done everything that the law requires to give the secured party greater rights to the goods than others have.

Attaches

In legal parlance, attaches means to legally seize or take control of property, often in the context of securing a debt or executing a court order.