What Would Happen to the Debt-To-Assets Ratio,if at the End

question 6

Multiple Choice

What would happen to the debt-to-assets ratio,if at the end of 2015,the company borrowed $1,000 from the bank by signing a promissory note and received $2,000 from the issuance of stock?

• A)This transaction would cause the debt-to-assets ratio to increase.
• B)This ratio would increase indicating a less risky financing strategy.
• C)The debt-to-assets ratio would not change.
• D)This ratio would decrease because assets would increase by more than liabilities.

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Definitions:

Adaptive IHRM Strategy

An approach in international human resource management that adjusts policies and practices to fit the cultural, legal, and economic contexts of different countries.

Local Employees

Individuals employed by a company who are from, or reside in, the same country where the organization's operations are located, contrasting with expatriate employees.

Self-Maintenance Competencies

Skills and abilities enabling individuals or organizations to independently manage their development and required upkeep without external assistance.

Alienation

A condition in social relationships reflected by a low degree of integration or common values and a high degree of distance or isolation between individuals, or between an individual and a group.