All of the Following Statements Are True EXCEPT

question 25

Multiple Choice

All of the following statements are true EXCEPT:

• A)a standard differential allows one wheel to rotate if it begins to slip.
• B)a limited slip differential locks the spider gears when one wheel starts to lose traction.
• C)if there are 10 teeth on the pinion gear and 33 teeth on the ring gear, the ratio is 5.30:1.
• D)when torque is applied to the clutch pack, the side gear locks to the case, causing the wheel on that side to be driven.

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Definitions:

Total Assets

The sum of all resources owned by an entity, including both current and fixed assets, representing the total value of what it owns.

Liquidity

The ease with which assets can be converted into cash without significantly affecting their value, often essential for meeting short-term financial obligations.

Leverage

The use of borrowed capital or financial instruments to increase the potential return of an investment, or in business, the use of various techniques to maximize outcomes.

Ability to Generate Cash

The capacity of a business to convert activities or assets into liquid funds to meet short-term obligations and support operations.