Most Lenders Would Prefer to Lend Money to a Firm

question 101

True/False

Most lenders would prefer to lend money to a firm that has a high debt-to-owners' equity ratio.

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Definitions:

Civil Rights Act

A landmark piece of legislation in the United States that outlaws discrimination based on race, color, religion, sex, or national origin, initially passed in 1964 to enforce constitutional rights and eliminate discrimination.

Punitive Damages

Compensation awarded in a lawsuit as a punishment to the defendant for malicious, violent, oppressive, fraudulent, or reckless behavior, and to deter similar conduct in the future.

Consent Decree

A legal agreement approved by a judge, often used to settle lawsuits without the defendant admitting guilt but agreeing to do or stop doing certain actions.

Affirmative-Action Practices

Strategies and policies employed to promote opportunities for historically marginalized groups in areas such as employment and education.