Which Financial Ratio Is a Measure of the Ability of the Company

question 4

Multiple Choice

Which financial ratio is a measure of the ability of the company to meet all of its fixed-charge obligations?

• A) debt to asset ratio
• B) debt to equity ratio
• C) times interest earned
• D) long-term debt to capital structure
• E) coverage of fixed charges

---

Definitions:

Delegation

The process of assigning responsibility and authority to others to carry out specific tasks or functions.

Hierarchy

An arrangement or institution where individuals or entities are classified above or below each other based on their status or power.

Organizational Behavior

The study of individual and group dynamics within an organizational context, focusing on improving productivity and promoting healthy work environments.

Real-life Settings

Contexts or environments that occur naturally in everyday life, as opposed to controlled or artificial situations.