Generally, a High ________ Ratio Could Lead Investors and Creditors

question 92

Multiple Choice

Generally, a high ________ ratio could lead investors and creditors to view the company as being very risky.

• A) debt to owners' equity
• B) acid-test
• C) diluted earnings per share
• D) inventory turnover

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Definitions:

Linear Demand Curve

A straight-line graphical representation showing the inverse relationship between the price of an item and the quantity demanded.

Total Revenue

The total income generated by a company from its sales of goods or services before any costs are subtracted.

Deadweight Loss

Economic inefficiency that occurs when equilibrium is not attained or unattainable for a specific good or service.

Airline Industry

A sector of the economy that provides air transport services for passengers and cargo, characterized by high levels of regulation and competition.