The Extent to Which a Business Relies on Debt in Its

question 42

Multiple Choice

The extent to which a business relies on debt in its operations is reflected in

• A)the equity ratio.
• B)the return-on-equity ratio.
• C)the quick ratio.
• D)the net-profit ratio.
• E)the return-on-asset ratio.

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Definitions:

Oil Tanker

A large ship designed for the transportation of oil in bulk, playing a critical role in the global oil industry's logistics.

ExxonMobil

An American multinational oil and gas corporation, one of the world's largest publicly traded energy providers and chemical manufacturers.

London Dumping Convention

An international agreement aiming to control pollution of the sea by dumping and to encourage the disposal of waste on land.

Toxic Pollutants

Substances that are harmful or poisonous to living organisms and can cause damage to the environment or human health.