Which of the Following Statements Is Incorrect

question 25

Multiple Choice

Which of the following statements is incorrect?

• A) For most businesses, increases in spontaneous liabilities will be enough to fund the necessary increases in assets.
• B) The capital intensity ratio indicates the amount of assets the firm needs to invest to generate each dollar in sales.
• C) The vast majority of fixed assets are "chunky" or "lumpy" since they have to be bought in non-divisible quantities.
• D) All of these choices are correct.

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Definitions:

Automatized Behavior

Actions or behaviors that have become automatic due to repetition and are performed without conscious thought.

Cognitive Processes

Mental activities involved in the acquisition, processing, and storage of knowledge.

Stereotype

Overgeneralized beliefs about a particular category of people that simplifies the complexity of human behaviors and characteristics.

Heuristic Processing

A method of decision-making or reasoning based on simplified strategies or 'rules of thumb', rather than systematic analysis.