When a Company Has a High Debt Ratio, It Is

question 94

Multiple Choice

When a company has a high debt ratio, it is an indication of a:

• A) high solvency risk.
• B) weak operating efficiency.
• C) high profit margin.
• D) low asset turnover.

---

Definitions:

Stereochemical Detail

Information regarding the three-dimensional arrangement of atoms within a molecule, important for understanding its chemical behavior.

Organic Product

A substance commonly derived from natural sources, primarily consisting of carbon atoms in its molecular structure, organized in chains or rings.

Regio-

A term used to describe the region or position of a molecule where a chemical reaction takes place.

Stereochemical Detail

Pertains to the 3D arrangement of atoms within a molecule and how it influences the behavior and reactivity of the molecule.