The Capital Intensity Ratio Is Generally Defined as Follows

question 37

Multiple Choice

The capital intensity ratio is generally defined as follows:

• A) The percentage of liabilities that increase spontaneously as a percentage of sales.
• B) The ratio of sales to current assets.
• C) The ratio of current assets to sales.
• D) The amount of assets required per dollar of sales, or A₀*/S₀.
• E) Sales divided by total assets, i.e., the total assets turnover ratio.

---

Definitions:

Federal System

A form of government in which power is divided between a central authority and constituent political units.

Unitary

A system of government where a single central government holds the majority of the power, with any regional or local governments having authority that is delegated from the central government.

Confederal Systems

A form of government where power is given to individual states or entities, with a weak central authority, allowing for a loose union.

Government Advantages

These are the benefits that accrue to society from effective governance, including stability, security, and public services.