Which Ratio, When High, Indicates the Firm Is Highly Leveraged

question 70

Multiple Choice

Which ratio, when high, indicates the firm is highly leveraged?

• A) return on equity
• B) debt-to-equity
• C) return on assets
• D) current

Distinguish between general and limited partners in partnerships and the extent of their liability and involvement in management.

Understand the concept of a professional corporation and how it differs from other business entities in terms of management and liability.

Identify the characteristics of a joint venture and how they compare to partnerships.

Grasp the principles of co-ownership in business entities and how it relates to management and profit sharing.

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Definitions:

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by developmental delays and physical features unique to the condition.

Brain Malformation

Abnormalities in the structure of the brain that arise due to errors in the developmental process, potentially leading to various neurological deficits or conditions.

Temperament

The inherent part of an individual's personality, including mood, behavior tendencies, and emotional responses, that is evident from a young age.

PKU

Phenylketonuria, a genetic disorder resulting in a deficiency in the enzyme responsible for breaking down phenylalanine, leading to harmful levels in the body unless managed by diet.