The Debt to Assets Ratio Is Computed by Dividing

question 116

Multiple Choice

The debt to assets ratio is computed by dividing

• A)long-term liabilities by total assets.
• B)total liabilities by total assets.
• C)total assets by total liabilities.
• D)total assets by long-term liabilities.

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Definitions:

Identical Products

Goods that are exactly the same in every feature, allowing them to be perfect substitutes for one another in the market.

Oligopoly

A market structure where a few firms dominate the market, resulting in minimal competition and a large share of the market controlled by these firms.

Imperfect Competition

A market structure where the conditions of perfect competition are not met, characterized by a heterogeneous product or a limited number of sellers.

Price Takers

Companies or individuals who accept the prevailing prices in the market because they do not have enough market power to influence the price of an item themselves.