Which of the Following Is NOT a Key Ratio in the Prediction

question 3

Multiple Choice

Which of the following is NOT a key ratio in the prediction of bankruptcy,as developed by Edward Altman?

• A)Debt-to-equity ratio
• B)Current ratio
• C)Retained earnings as a percent of total assets
• D)EBIT to total assets

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Definitions:

Unconscionability

Refers to a situation where a contract is so unfairly one-sided that it shocks the conscience, often due to undue influence, duress, or gross inequality in bargaining power.

Enforceable Offer

A proposal made in a contract that is legally binding and can be enforced in a court of law, provided it meets all the required conditions.

Restatements of the Law

A set of treatises published by the American Law Institute, articulating the principals of common law in the United States.

CISG

The United Nations Convention on Contracts for the International Sale of Goods, a treaty that establishes a uniform legal framework for international commerce.