If Company a Has a Debt-To-Assets Ratio of 0

question 115

Multiple Choice

If Company A has a debt-to-assets ratio of 0.73 while Company B has a debt-to-assets ratio of 0.45,which of the following statements is correct?

• A)Stockholders own a smaller proportion of Company A than Company B.
• B)Company A must make less profit than Company B.
• C)Creditors own a smaller proportion of Company A than Company B.
• D)Company A must have fewer assets than Company B.

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Definitions:

Social Psychology

The analysis of the ways in which the presence, whether real, perceived, or suggested, of other people affects an individual's mental processes, emotions, and actions.

Multiple-Choice Options

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