Which One of the Following Statements Is NOT True

question 61

Multiple Choice

Which one 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 assets is called the capital intensity ratio.
• C) The higher the ratio, the more capital a firm needs to generate sales.
• D) Firms that are highly capital intensive are more risky than those that are not.

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Definitions:

Limiting Reactant

The limiting reactant is the substance in a chemical reaction that is completely consumed first, thereby determining the maximum amount of product that can be formed.

Wax

A diverse class of organic compounds that are malleable at slightly higher temperatures than room temperature and mainly consist of hydrocarbons.

Theoretical Yield

The maximum amount of product that could be formed from given amounts of reactants in a chemical reaction, assuming no losses.

Carbon Dioxide

This is a gas that has no color or odor, generated through the combustion of carbon-based substances and the respiratory process, and is consumed by plants for photosynthesis.