From a Creditor's Point of View, the Higher the Debt

question 2

True/False

From a creditor's point of view, the higher the debt to total assets ratio, the lower the risk that the company may be unable to pay its obligations.

---

Definitions:

Depolarization

A reduction in the difference in electric charge across a cell membrane, leading to the activation of nerve or muscle cells.

Reuptake

A process by which neurotransmitters are absorbed back into a neuron after having been released into a synapse, thus terminating the transmission of signals.

Excitatory PSPs

Excitatory postsynaptic potentials are increases in potential that bring a neuron closer to the threshold for firing, facilitating the transmission of signals.

Inhibitory PSPs

Post-synaptic potentials that make a post-synaptic neuron less likely to generate an action potential.