Which of the Following Statements Is False

question 29

Multiple Choice

Which of the following statements is false?

• A) The price-to-book ratio measures the market's value of the firm relative to balance sheet equity.
• B) The equity multiplier ratio is calculated as owners' equity divided by total assets.
• C) The degree of operating leverage measures the sensitivity of operating income to changes in the level of output.
• D) Ratio analysis allows for comparison of firms of different sizes.

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Definitions:

Fatuous Love

A type of love described by Sternberg's Triangular Theory of Love, characterized by passion and commitment but lacking deep intimacy.

Consummate Love

A type of love that combines intimacy, passion, and commitment - considered by many as an ideal form of love.

Romantic Love

A deeply emotional and passionate form of love characterized by intimacy, physical attraction, and a desire for long-term commitment.

Empty Love

A state in Sternberg's Triangular Theory of Love characterized by commitment without intimacy or passion.