A Firm That Takes on Too Much Long-Term Debt to Finance

question 6

Multiple Choice

A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of ________ financial leverage.

• A) short-term
• B) long-term
• C) relative
• D) comparable

---

Definitions:

Zaltman Metaphor Elicitation Technique

A technique in market research that uses visual stimuli to elicit deep, unconscious thoughts and feelings from consumers regarding a product or service.

Projective Technique

A psychological method used in market research to help participants express their feelings and thoughts indirectly by responding to ambiguous stimuli.

Ethnography

A qualitative research method that studies people and cultures in their natural environment through observation and sometimes direct participation.