Which Ratio Measures the Percentage of Total Assets Financed by Debt

question 126

Multiple Choice

Which ratio measures the percentage of total assets financed by debt?

• A) debt
• B) debt-to-equity
• C) equity multiplier
• D) liquidity

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Definitions:

Horizontal Merger

A business consolidation that occurs between firms operating in the same industry, often aiming to increase market share.

Conglomerate Merger

A union between firms that are involved in totally unrelated business activities.

Vertical Merger

A merger between companies in the same industry but at different stages of the production process, aiming at creating efficiencies or reducing costs.

Consolidation

The process of combining multiple accounts or businesses into a single entity, often for the purpose of simplifying financial statements or achieving operational efficiencies.