Capacity Is the Capability of a Worker, Machine, Work Center

question 71

True/False

Capacity is the capability of a worker, machine, work center, plant, or organization to produce output per time period.

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Definitions:

Long-term Securities

Financial instruments that typically have a maturity period of more than one year and are used to finance longer-term investments.

Temporary Working Capital

The additional working capital needed to support fluctuations in business activity above the normal level.

Capital Requirement

The amount of capital a bank or financial institution must hold to shield against financial risk and comply with regulatory standards.

Net Operating Working Capital

The difference between a company's current assets and its current liabilities, excluding interest-bearing debt.