Which One of the Following Will Result from Receiving Cash

question 111

Multiple Choice

Which one of the following will result from receiving cash upon issuing long-term debt?

• A)Increase of the company's indebtedness
• B)Decrease of the current ratio
• C)Increase of retained earnings
• D)Increase of total shareholders' equity

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Definitions:

Creative Destruction

An economic theory that suggests that old industries or technologies are destroyed and replaced by new ones for economic growth and development.

Disruption

A significant disturbance or interruption to the normal flow or process, often leading to a need for adjustment or a new way of thinking.

Social Entrepreneurship

An approach to business where solving social problems and issues is as important as profitability, innovatively blending commercial and social objectives.

Enterprising Social Innovation

The creation and implementation of novel solutions to social problems that harness entrepreneurial principles to achieve sustainable, impactful change.