Bathlinks Corporation Has a Debt to Assets Ratio of 73

question 132

Multiple Choice

Bathlinks Corporation has a debt to assets ratio of 73%.This tells the user of Bathlinks's financial statements that

• A)Bathlinks is getting a 27% return on its assets.
• B)there is a risk that Bathlinks cannot pay its debts as they come due.
• C)73% of the assets are financed by the stockholders.
• D)based on this measure, the user should not invest in Bathlinks.

---

Definitions:

Contacts

Connections or relationships with other people, often valued for the exchange of information, opportunities, or resources they can provide.

Passive Resistance

A form of non-violent opposition or deliberate refusal to comply with certain laws, demands, or commands of authority figures.

Non-compliance

Failure or refusal to act in accordance with a set of rules, standards, or laws.

Sources of Power

Various bases or origins from which individuals or groups can exert influence or control over others, such as authority, expertise, or personal attraction.