When a Firm's Debt-Equity Ratio Is 1

question 46

Multiple Choice

When a firm's debt-equity ratio is 1.0, the firm:

• A)Has too much long-term debt in relation to leases
• B)Has less long-term debt than equity
• C)Is nearing insolvency
• D)has as much in long-term liabilities as in equity

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Definitions:

Store Visit

The act of going to a physical retail location to examine or purchase products or services.

Category Management

An approach to managing the assortment of merchandise in which a manager is assigned the responsibility for selecting all products that consumers in a market segment might view as substitutes for each other, with the objective of maximizing sales and profits in the category.

Merchandise Assortment

The range of products a retailer offers for sale, including the variety of product lines, categories, and individual items, to meet customer demands.

Product Management

The process of developing, bringing to market, and managing a product throughout its lifecycle, from concept to discontinuation.