A Reduction in the Ratio Net Sales/average Property, Plant and Equipment

question 6

Multiple Choice

A reduction in the ratio net sales/average property, plant and equipment over time could mean:

• A) there is an elevated level of inflation.
• B) the price of plant and equipment is falling.
• C) the firm may be heading for a liquidity crisis.
• D) there is an over-investment in plant and equipment.

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Definitions:

Appetizing Food

Food that is visually appealing and stimulates the desire to eat due to its appearance, smell, or anticipated taste.

Steady Internal State

The maintenance of a consistent internal environment within an organism, often referred to as homeostasis.

Weight Thermostat

A hypothesized mechanism within the body that regulates metabolic processes to maintain a target weight range.

External Incentives

Rewards or punishments from the external environment that influence the motivation for certain behaviors.