Which One of the Following Statements Is Correct Concerning the Capital

question 55

Multiple Choice

Which one of the following statements is correct concerning the capital intensity ratio?

• A) The capital intensity ratio is the reciprocal of the total asset turnover ratio.
• B) The capital intensity ratio provides the amount of sales generated for each $1 in total assets.
• C) The higher the capital intensity ratio, the less emphasis the firm puts on capital.
• D) The capital intensity ratio is used to compute the internal rate of growth.
• E) The capital intensity ratio relates the amount of current assets to long-term assets.

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Definitions:

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, rather than personal satisfaction or interest.

Intrinsic Motivation

The drive to engage in an activity for its own sake and for personal satisfaction, rather than for some external reward.

Rewarding Act

An action that is positively reinforced, leading to the likelihood of the behavior occurring again in the future.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment or social norms.