From a Creditor's Point of View, the Higher the Debt

question 2

True/False

From a creditor's point of view, the higher the debt to total assets ratio, the lower the risk that the company may be unable to pay its obligations.

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Definitions:

Over-Reward Inequity

Occurs when an individual perceives that they are receiving more rewards (pay, recognition, benefits) in comparison to others for the same amount of effort or contribution.

Outcomes-To-Inputs Ratio

A principle in equity theory that compares the rewards (outcomes) one receives from a job relative to the effort (inputs) one has invested.

Sensitives

Individuals or entities that are highly responsive or susceptible to external stimuli or changes in their environment.

Entitleds

Individuals who believe they deserve special treatment or privileges, regardless of their actual accomplishments or contributions.