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:

Involuntary Clients

Involuntary Clients are individuals who receive services or interventions without their consent, often mandated by legal systems, institutions, or agencies.

Intervention Process

The systematic procedure of assessing and responding to an individual's or group's needs through planned actions to facilitate change or improvement.

Mandated Involuntary Clients

Individuals who are required to receive services or participate in programs by legal or institutional order, often against their will.