Which of the Following Statements Best Compares Long-Term Borrowing Capacity

question 19

Multiple Choice

Which of the following statements best compares long-term borrowing capacity ratios?

• A)The debt/equity ratio is more conservative than the debt ratio.
• B)The debt ratio is more conservative than the debt/equity ratio.
• C)The debt/equity ratio is more conservative than the debt to tangible net worth ratio.
• D)The debt to tangible net worth ratio is more conservative than the debt/equity ratio.
• E)The debt ratio is more conservative than the debt to tangible net worth ratio.

---

Definitions:

Product Life Cycle

Describes the stages a product goes through from when it is first introduced into the market until it declines or is removed from the market; the stages include introduction, growth, maturity, and decline.

Promotional Mix

The blend of different marketing strategies and tactics – such as advertising, public relations, personal selling, and sales promotion – used to reach the target audience, create awareness, and generate sales or achieve marketing objectives.

Decline

A phase in the product life cycle or market trend where sales or interest starts decreasing over time.

Product Characteristics

Attributes or features that define a product and differentiate it from competitors, including quality, functionality, and design.