__________ Best Explains a Ratio of Sales/average Net Fixed Assets

question 26

Multiple Choice

__________ best explains a ratio of sales/average net fixed assets that exceeds the industry average.

• A) The firm expanded plant and equipment in the past few years
• B) The firm makes less efficient use of assets than competing firms
• C) The firm has a substantial amount of old plant and equipment
• D) The firm uses straight-line depreciation

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Definitions:

Rejection Identification Theory

A psychological theory suggesting that individuals may strengthen their identification with a rejected group, thereby preserving their self-esteem.

Discriminated

Treated differently or unjustly on the basis of race, age, sex, or other attributes, often resulting in disadvantage or exclusion.

Socialization

The process by which individuals learn and adopt the norms, values, and behaviors appropriate to their society or social group.

Biases

Prejudices or inclinations that affect judgment, causing partiality or favoritism in decision-making, often leading to unfair outcomes.