From a Creditor's Point of View, the Higher the Debt

question 94

True/False

From a creditor's point of view, the higher the debt to assets ratio, the lower the risk that the company may be unable to pay its obligations.

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Definitions:

Liens

Legal claims or rights against property or assets that secure the payment of a debt or fulfillment of some obligation.

Suppliers

Entities that provide goods or services to another entity, typically in a business-to-business relationship.

Canceling

involves terminating an agreement, order, or subscription, effectively ending an arrangement or contract.

Technicality

A minor detail affecting a legal decision or process that may have implications for the outcome of a case or the execution of a contract.