Final answer:
The statement that all principal words in a title should be capitalized is true, following MLA style. Articles, conjunctions, and prepositions are not usually capitalized unless they are at the beginning or end of a title.
Step-by-step explanation:
Capitalization in Literary Titles
When it comes to capitalization in literary titles, the statement that you should capitalize all principal words is true. According to MLA style, the first and last words in a title and subtitle should be capitalized. This also includes other important words within a title. However, certain words such as articles (a, an, the), coordinating conjunctions (for, and, nor, but, or, yet, so), and prepositions (above, with, of, in, through, beyond, under) usually are not capitalized unless they are the first or last words in the title or subtitle. Furthermore, proper nouns within titles should always be capitalized.
Remember that when formatting titles of longer works, such as books or films, you should use italics. In contrast, shorter works like articles, stories, or poems often use quotation marks.
For clarity, the example title "Computer Business Is Ripe for Consolidation" should have the words 'Computer', 'Business', 'Is', 'Ripe', 'for', and 'Consolidation' capitalized.