First Communications Group Is a Communication Services Firm Whose Employees

question 48

Multiple Choice

First Communications Group is a communication services firm whose employees provide advertising, market research, public relations, and other services world-wide.Other than relatively small amounts of equipment, it owns virtually no property, plant, and equipment (it leases most of its office space) .Which of the following is/are true?

• A)First Communications Group has a low fixed asset intensity.
• B)First Communications Group has a low debt-equity ratio.
• C)First Communications Group creates value from employees' services, not from operating assets, so there is neither the need nor the ability to borrow long-term using property, plant, and equipment as collateral.
• D)all of the above are true
• E)none of the above

---

Definitions:

Biotechnology Patents

Legal protections granted for inventions and processes in the field of biotechnology, safeguarding the rights of inventors.

Agriculture Industry

The sector of the economy concerned with the production, processing, and distribution of food, fiber, and other goods through farming and forestry.

Political Skill

The ability to understand others and use that knowledge to influence or guide their behavior to obtain desired outcomes within a political or organizational context.

Organizational Goals

The objectives or targets that an organization aims to achieve, typically designed to guide its strategic direction.