What Is the Function of Leverage Ratios

question 28

Multiple Choice

What is the function of leverage ratios?

• A) They indicate an organization's operational efficiency.
• B) They indicate how well an organization is being managed.
• C) They measure the magnitude of owners' and creditors' claims on the organization.
• D) They evaluate how effectively an organization is managing some of its basic operations.
• E) They judge how well an organization will be able to meet its short-term financial goals.

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Definitions:

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