To Earn a High Rating from the Bond-Rating Agencies, a Firm

question 102

Multiple Choice

To earn a high rating from the bond-rating agencies, a firm should have

• A)a low times-interest-earned ratio.
• B)a low debt-to-equity ratio.
• C)a high quick ratio.
• D)a low debt-to-equity ratio and a high quick ratio.

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Definitions:

Cross-Cultural Research

Studies that compare aspects of two or more cultures to understand their differences and similarities.

Human Universal

A term referring to elements and behaviors that are found and recognized across all cultures and societies.

Base Of Power

The underlying sources of influence or authority one has over others, such as expertise, coercion, or referred authority.

Normative

Relating to an ideal standard or model, or based on what is considered to be the normal or correct way of doing something.