Which of the Following Ratios Measures the Proportion of a Firm's

question 29

Multiple Choice

Which of the following ratios measures the proportion of a firm's total assets that have been acquired with borrowed funds?

• A) Fixed asset turnover
• B) Total asset turnover
• C) Debt ratio
• D) Times interest earned ratio

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Definitions:

Tolerance for Ambiguity

The ability to remain comfortable and react constructively in situations that are unclear, complex, or not immediately understandable.

Name Brand

A brand that is widely recognized by the public and usually associated with a certain level of quality, reliability, and status.

Self-monitoring

The act of observing and regulating one’s own behavior in social situations to fit into the surrounding environment or achieve a personal goal.

Need for Closure

The desire to find an answer or to come to a decision quickly in order to alleviate uncertainty and ambiguity.