The _____ Is a Rule of Thumb Used in Business

question 73

Short Answer

The _____ is a rule of thumb used in business that helps people focus on the vital 20 percent that generate 80 percent of the results.

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Definitions:

Debt-to-Equity Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by stockholders' equity.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to fund a company's operations and growth.

Creditors

Individuals, businesses, or other entities that are owed money because they have provided goods, services, or loans to another entity.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, represented by the shareholders' investment and retained earnings.