An Improvement in the Proportion of a Company's Assets That

question 23

Multiple Choice

An improvement in the proportion of a company's assets that are financed with debt would be shown by:

• A) an increase in the current ratio
• B) a decrease in the current ratio
• C) a decrease in the debt ratio
• D) an increase in the debt ratio

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Definitions:

Large Firms

Corporations or businesses that have a significant number of employees, a large volume of sales, or substantial assets.

Small Firms

Businesses characterized by a limited number of employees, often viewed as more agile but with lesser resources compared to larger corporations.

Low-context Cultures

Cultures that rely heavily on explicit communication and direct expression of thoughts and ideas.

High-context Cultures

Cultures in which communication relies heavily on contextual elements like body language, status, and tone of voice, rather than explicit words.