A Total Debt Ratio of .35

question 54

Multiple Choice

A total debt ratio of .35:

• A) indicates that the firm is financed with 35% long-term debt.
• B) would exist if a firm had liabilities of $700 and assets of $2,000.
• C) indicates that 35 cents of every dollar of capital is in the form of short-term debt.
• D)indicates that 35 cents of every dollar of capital is in the form of long-term debt.

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Definitions:

Logistical Strengths

The aspects of a company's supply chain that are particularly efficient or effective, helping the company to reduce costs, improve delivery times, or enhance service quality.

Consumer Loyalty

The likelihood of previous customers continually choosing the same brand over competitors due to positive experiences or satisfaction.

Value Chain

The full range of activities that businesses go through to bring a product or service from conception to delivery and beyond.