Which One of the Following Statements Concerning the Capital Intensity

question 65

Multiple Choice

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

• A) The capital intensity ratio is equal to sales divided by net fixed assets.
• B) The lower the capital intensity ratio, the greater the capital intensity level of the firm.
• C) The capital intensity ratio is equal to one minus the total asset turnover ratio.
• D) The capital intensity ratio is based on the degree of financial leverage employed by a firm.
• E) The capital intensity ratio tells the amount of total assets needed to generate each dollar of sales.

---

Definitions:

Ignore

To deliberately pay no attention or give no response to a person or event.

Attention Getting

Behaviors or actions designed to attract notice or focus from others.

Unacceptable Behavior

Actions or conduct that are considered inappropriate or unacceptable in a given context or society.

Preventative Measures

Actions taken to reduce the likelihood of an undesirable event or condition occurring.