Which of the Following Statements Is Most Correct

question 6

Multiple Choice

Which of the following statements is most correct?

• A) If the capital intensity ratio is high, this permits sales to grow more rapidly without much outside capital.
• B) The lower the profit margin, the lower the additional funds needed because less assets are needed to support existing sales.
• C) When positive economies of scale are present, linear balance sheet relationships no longer hold. As sales increase, a proportionately greater stock of assets is required to support the higher sales level.
• D) Technological considerations often require firms to add fixed assets in large, discrete units. Such assets are called lumpy assets and they affect the firm's financial requirements through the fixed assets/sales ratio at different sales levels.
• E) The percentage of sales method accounts for changing balance sheet ratios and thus, cyclical changes in the actual sales/assets ratio do not have an impact on financing requirements.

Acknowledge the impact of lack of socialization on human potential and behavior.

Analyze the criticisms of Freud's analysis, particularly regarding gender.

Delineate the process and importance of taking the role of the other as a developmental stage.

Understand the contribution of sociological perspectives to the development of self and identity.

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Definitions:

Investments

Assets or commodities acquired with the intention of generating income or appreciating in value over time.

Cash Quickly

A term referring to methods or strategies used to obtain liquid funds in a short period of time.

Present Value Factor

A number by which a future payment is multiplied to determine its present value.

Annuity

An economic scheme that delivers fixed periodic earnings to recipients, usually serving as financial support for those retired.