Utilization Is the Degree to Which Equipment, Space, or the Workforce

question 71

True/False

Utilization is the degree to which equipment, space, or the workforce is currently being used, measured as the ratio of average output rate to the maximum capacity.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, often associated with the potential for financial loss due to market volatility, credit risk, and liquidity risk.

Debt Ratio

A financial ratio that measures the extent of a company's leverage, calculated as total debt divided by total assets.

Interest Expense

The cost incurred by an entity for borrowed funds, which can include payment of interest on bonds, loans, convertible debt, and lines of credit.

Capital Structure

The mix of various forms of external funds and equity that a firm uses to finance its activities.