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Your Friend Is Trying to Learn About How to Kill

question 81

Multiple Choice

Your friend is trying to learn about how to kill bacteria. She reads that preservatives such as citric acid are added to foods because the acidic environment kills bacteria by denaturing their proteins. She thinks this sounds like a lot of scientific jargon and asks you what it means. How can you explain it in simpler terms?


Definitions:

Long-term Borrowing

Debt obtained by a company with repayment terms extending beyond one year, used to finance the company's long-term investments and operations.

Debt Ratio

The debt ratio is a financial metric that compares a company's total liabilities to its total assets, indicating the proportion of a company’s assets that are financed by debt.

Solvency Risk

The risk that a company will not have enough funds to meet its long-term liabilities and financial commitments.

Long-term Asset Turnover Ratio

A financial metric that measures a company's efficiency in using its long-term assets to generate revenue.

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