The Debt-Equity Ratio Is an Example of a

question 19

Multiple Choice

The debt-equity ratio is an example of a

• A) Profit and loss statement.
• B) Profitability ratio.
• C) Leverage ratio.
• D) Current ratio.
• E) Liquidity ratio.

---

Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service.

Equilibrium Price

The price level where the amount of products provided matches the amount of products customers want to buy.

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that buyers are willing to buy, leading to a stable market condition.

Price Floor

A government- or group-imposed limit on how low a price can be charged for a product, above the equilibrium price, leading to surpluses.