The Capital Intensity Ratio Is the Amount of Assets Required

question 22

True/False

The capital intensity ratio is the amount of assets required per dollar of sales and it has a major impact on a firm's capital requirements.

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Definitions:

Legitimacy

The perception or recognition as valid, acceptable, or justified according to established rules, standards, or values.

Dominant Stakeholder

A key entity or individual who has significant influence or control over the decisions and direction of a project or organization.

Power

The ability or capacity to influence the behavior of others or the course of events, often through the possession of knowledge, wealth, or connections.

Legitimacy

The general perception or recognition that an entity's actions are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions.