Which of the Following Would Increase the Likelihood That a Company

question 54

Multiple Choice

Which of the following would increase the likelihood that a company would increase its debt ratio, other things held constant?

• A)An increase in costs incurred when filing for bankruptcy.
• B)An increase in the corporate tax rate.
• C)An increase in the personal tax rate.
• D)The Federal Reserve tightens interest rates in an effort to fight inflation.
• E)The company's stock price hits a new low.

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Definitions:

Legal

Pertaining to the law or the system of rules that a particular country or community recognizes as regulating the actions of its members and may enforce by the imposition of penalties.

Social

Relating to society or its organization, or the interactions among individuals within a community.

Communal

Pertaining to or shared by members of a community or group.

Altruistic

The quality of unselfishly caring for the welfare of others, often at a personal cost.