Creditors Would Like the Debt-To-Equity Ratio to Be _______, Indicating

question 35

Short Answer

Creditors would like the debt-to-equity ratio to be _______, indicating that stockholders have financed most of the assets of the firm.

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Definitions:

Duty Of Care

A legal obligation imposed on an individual requiring adherence to a standard of reasonable care while performing any acts that could foreseeably harm others.

Breach

The violation of a legal obligation, rule, or agreement.

Legally Recognizable Injury

A harm or loss that the law considers sufficient to provide a basis for a lawsuit.

Negligence Action

A legal action taken for injuries or losses resulting from the failure of an individual to exercise reasonable care.