Which one of the following statements is NOT true?

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.





Answer: B


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