A Low Capital Expenditures Ratio Indicates a Higher Need to Obtain

question 98

True/False

A low capital expenditures ratio indicates a higher need to obtain outside financing to expand property, plant, and equipment assets.

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Definitions:

Requirements Contract

A commercial agreement which obligates a buyer to purchase a seller's production or a seller to supply all demands of the buyer for certain goods or services.

Exclusive Dealing

A contractual agreement in which one party grants another party the sole rights to sell or distribute its goods or services within a specified territory or market.

Agreement

A mutual understanding or arrangement between two or more parties regarding their respective rights and responsibilities.

Exclusive Dealing Agreements

Contracts that restrict a party from buying, selling, or promoting the goods or services of anyone other than the specified party, often used to solidify business relationships and ensure loyalty.