The Ratio of Fixed Assets to Long-Term Liabilities Provides a Measure

question 180

True/False

The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.

---

Definitions:

Causal Thinking

involves understanding the cause-effect relationship between two events or situations, believing one event is the result of the occurrence of the other event.

Value Rationality

A concept in sociology and economics that refers to behavior motivated by a consistent set of ethical or ideological beliefs, as opposed to actions motivated by ends-means calculations.

Ethics

The branch of philosophy that deals with questions about morality and the principles guiding right and wrong conduct.

Affective Action

Actions motivated by feelings, emotions, or affective states rather than rational calculations or norms.