The Ratio That Helps to Measure the Risk Involved in Financing

question 48

Multiple Choice

The ratio that helps to measure the risk involved in financing a business with borrowed funds is the:

• A) current ratio.
• B) profit margin ratio.
• C) interest cover ratio.
• D) asset turnover ratio.

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Definitions:

Optional Projects

Tasks or assignments that are not mandated but can be chosen or taken on voluntarily, often for additional credit, experience, or personal interest.

Sleep Ritual

A set of routines or activities performed before bedtime to help improve the quality of sleep.

Negative Stress

A form of stress that results from facing adverse or threatening situations, leading to physical or psychological strain.

Work Environment Stressors

Factors within the workplace that can contribute to stress, including workload, lack of control, and interpersonal conflicts.