If a Firm Has an Exceptionally Good Year and Grows

question 16

Multiple Choice

If a firm has an exceptionally good year and grows as a result, then

• A)the debt-equity ratio of the firm will increase.
• B)the debt ratio of the firm will increase.
• C)the equity of the firm will increase.
• D)both A and B.

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Definitions:

Capital Offense

An offense for which the legal system can impose the death penalty.

First-degree Felony

A classification of crime regarded as the most serious, typically involving severe harm or risk to human life.

Criminal Case

A legal proceeding against someone accused of committing a crime, where the government seeks to prove the defendant's guilt beyond a reasonable doubt.

Reasonable Doubt

The standard of evidence required in criminal trials that must be fulfilled by the prosecution to secure a conviction, indicating that there is no other logical explanation derived from the facts except that the defendant committed the crime.