A Debt Ratio of 0

question 32

True/False

A debt ratio of 0.50 (50%)would mean that half of a company's assets would need to be sold to pay off all of its current liabilities.

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding taxes and interest.

Price Hike

An increase in the price of goods or services, which can be due to various factors including increased production costs or higher demand.

Net Operating Income

A measure of a company’s profitability, calculated as revenues less operating expenses excluding taxes and interest.

Traceable Fixed Expense

A fixed cost that can be directly linked to a specific segment of the business and would be eliminated if the segment ceased operations.