Which of the following is not true when forming an industrial mutual aid association?

The statement about capital outlay and operating costs being usually modest is not accurate when forming an industrial mutual aid association. These associations often require a significant investment in both capital and operating expenses to ensure that they can effectively support their members during emergencies. This includes costs related to training, equipment, and potential response capabilities.

In contrast, the other options highlight important truths about the nature of mutual aid associations. Each member firm's commitment to share expenses ensures a collective responsibility, which is crucial for the sustainability of the association. Establishing these associations prior to an emergency allows for organized and efficient responses, ensuring that all members are prepared and have clearly defined roles. Additionally, the importance of having an operating board cannot be understated, as it provides leadership and direction, facilitating coordination among members and the implementation of plans when needed.