Which of the Following Statements Is CORRECT

question 18

Multiple Choice

Which of the following statements is CORRECT?

• A) Other things held constant, the more debt a firm uses, the higher its operating margin will be.
• B) Debt management ratios show the extent to which a firm's managers are attempting to magnify returns on owners' capital through the use of financial leverage.
• C) Other things held constant, the more debt a firm uses, the higher its profit margin will be.
• D) Other things held constant, the higher a firm's debt ratio, the higher its TIE ratio will be.
• E) Debt management ratios show the extent to which a firm's managers are attempting to reduce risk through the use of financial leverage. The higher the debt ratio, the lower the risk.

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Definitions:

Conflict Types

Categories of disagreement or discord based on different factors like values, desires, resources, and personalities.

Emotional Intelligence

The ability to understand, manage, and express one's own emotions, as well as to deal with relationships with others in a wise and compassionate way.

Cross-cultural Effectiveness

The ability of individuals or organizations to operate effectively in diverse cultural settings, demonstrating respect, understanding, and adaptability.

Self-motivation

The ability of an individual to initiate and persist at tasks or activities without external incentives or pressures.