The Capital Intensity Ratio Is the Amount of Assets Required

question 22

True/False

The capital intensity ratio is the amount of assets required per dollar of sales and it has a major impact on a firm's capital requirements.

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Definitions:

Clearinghouse

A private or public company that often serves as the middleman between physicians and billing groups, payers, and other health care partners for the transmission and translation of electronic claims information into the specific format required by payers.

Per-Claim Transaction Fee

A charge applied each time a claim is processed, typically in healthcare billing or insurance contexts.

Manual Claims Tracking

The process of monitoring and managing insurance claims by hand, without the use of automated systems or software.

Payment Delays

Occurrences when payments to creditors or vendors take longer than agreed upon, often due to administrative issues or financial problems.