The Caption in an Answer Filed by the Dealership Should

question 7

True/False

The caption in an answer filed by the dealership should read: "Dan's Dealership, defendant, vs. Sakata, plaintiff."

---

Definitions:

Debt-Equity Ratio

A ratio illustrating the financial strategy of using debt versus equity in asset financing for a company.

Negative Net Worth

A financial situation where total liabilities exceed total assets, indicating financial distress.

Technical Insolvency

A situation where a company is unable to meet its short-term liabilities due to a lack of liquid assets, even though its total assets may exceed its liabilities.

Accounting Insolvency

A situation where the total liabilities of an entity exceed its total assets, indicating an inability to pay debts as they come due.