A High Debt Ratio ________

question 127

Multiple Choice

A high debt ratio ________.

• A)means that creditors provide a large percentage of the company's total financing
• B)gives a small business more borrowing capacity
• C)decreases the chances that creditors will lose money if the business is liquidated
• D)represents a lower risk to potential lenders and creditors

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Definitions:

Neurons

Specialized cells in the nervous system that transmit information through electrical and chemical signals.

Prefrontal Cortex

The frontmost region of the frontal lobes in the brain, involved in complex cognitive behavior, personality expression, decision making, and moderating social behaviour.

Temporal Lobes

Regions of the brain located beneath the temples, involved in processing auditory information and encoding memory.

Working Memories

A cognitive system that holds information temporarily available for processing tasks such as reasoning and comprehension.