Which of the Following Statements Is NOT True

question 55

Multiple Choice

Which of the following statements is NOT true?

• A) The ratio of total assets to sales is called the capital intensity ratio.
• B) The ratio of sales to total equity is called the capital intensity ratio.
• C) The higher the capital intensity ratio, the more capital a firm needs to generate sales.
• D) Firms that have high capital intensive ratios are riskier than similar firms that use less fixed assets.

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Definitions:

Alternator's Rotor

The rotating component within an alternator that produces the magnetic field, essential for generating electricity in an automotive charging system.

Three-phase Alternator

An electric generator that produces three separate waves of alternating current, delivering power at constant rates.

Output Frequency

The frequency at which an electronic device, such as an oscillator or amplifier, outputs its signal.

Revolving Armature Type

A design in electrical generators where the armature, or the part that generates electricity, rotates within a stationary magnetic field.