The capital intensity ratio is generally defined as follows:

A. Sales divided by total assets, i.e., the total assets turnover ratio.
B. The percentage of liabilities that increase spontaneously as a percentage of sales.
C. The ratio of sales to current assets.
D. The ratio of current assets to sales.
E. The amount of assets required per dollar of sales, or A0*/S0.


Answer: E

Business

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