The Debt-To-Asset Ratio Measures the Extent to Which a Firm

question 95

True/False

The debt-to-asset ratio measures the extent to which a firm relies on debt financing by dividing total debt by total assets.

Recognize how the UCC addresses contract formation, including offer, acceptance, and consideration.

Differentiate between sales of goods and transactions not covered by the UCC.

Know the role of merchants in the UCC and how it affects commercial transactions.

Understand how the UCC treats open terms, modifications, and additional terms in contracts.

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Definitions:

Unconscionable

Describes actions or conditions that are excessively unfair or immoral to a degree that they go against the basic principles of justice or good conscience.

Procedural Unconscionability

A legal concept where a contract or clause is considered unjust due to unfair or oppressive terms or conditions that were imposed upon one party, often due to unequal bargaining power.

Undue Influence

Improper or unfair persuasion by one party over another, often leading to decisions that are not in the victim's best interest.

Substantive Unconscionability

A legal principle that allows courts to refuse to enforce contracts that are grossly unfair or one-sided in favor of the party with superior bargaining power.