Which of the Following Statements Is a Logical Consequence of the Second

question 29

Multiple Choice

Which of the following statements is a logical consequence of the second law of thermodynamics?

• A) If the entropy of a system increases, there must be a corresponding decrease in the entropy of the universe.
• B) If there is an increase in the energy of a system, there must be a corresponding decrease in the energy of the rest of the universe.
• C) Every energy transfer requires activation energy from the environment.
• D) Every chemical reaction must increase the total entropy of the universe.
• E) Energy can be transferred or transformed, but it cannot be created or destroyed.

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Definitions:

Price-Earnings Ratio

A valuation metric comparing a company's current share price to its per-share earnings, used by investors to evaluate the relative value of a company's shares.

Working Capital

Current assets less current liabilities.

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.