A High Debt-To-Equity Ratio Does NOT Indicate That the Company

question 44

Multiple Choice

A high debt-to-equity ratio does NOT indicate that the company:

• A) is highly geared.
• B) is heavily in debt relative to its equity.
• C) may be vulnerable to interest rate increases.
• D) has a high current ratio.

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Definitions:

Financial Liquidity

The ease with which an asset can be converted into cash without affecting its market price.

Project Manager's Job

The role responsible for planning, executing, and closing projects, including managing teams, resources, timelines, and project risks.

Economic Order Quantity

A method of inventory control that places new orders when inventory levels fall to predetermined points.

Critical Path

The longest pathway in a CPM/PERT network.