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:

National Association for the Advancement of Colored People

A civil rights organization founded in 1909 to fight for the elimination of racial prejudice and discrimination, advocating for the rights and well-being of African Americans.

Hepburn Act

The Hepburn Act of 1906 is a United States federal law that gave the Interstate Commerce Commission the authority to set maximum railroad rates and extend its jurisdiction.

Railroad Abuse

Refers to unethical or illegal practices by railroad companies, often involving overcharging, monopolies, and exploitation of government land grants in the 19th and early 20th centuries.

ICC

Stands for the Interstate Commerce Commission, a regulatory agency in the United States created to regulate railroads and later trucking, to ensure fair rates and to regulate other aspects of common carriers.