A Firm with No Leases Has a Long-Term Debt-Equity Ratio

question 43

Multiple Choice

A firm with no leases has a long-term debt-equity ratio of 50%.This means that the book value of equity:

• A)equals the book value of long-term debt.
• B)is less than the book value of long-term debt.
• C)is greater than the book value of long-term debt.
• D)is unknown in relation to the book value of long-term debt.

---

Definitions:

Corporate Culture

The shared values, beliefs, and behaviors that shape the social and psychological environment of a business organization.

Employees

Individuals who are hired by organizations or persons to perform work in exchange for compensation.

Free-Rein Leadership

A leadership style where employees are given significant autonomy and decision-making power.

Own Decisions

Personal or organizational choices made independently without external influence.