A Company with Long-Term Debt of 80, Lease Obligations of 20

question 67

Multiple Choice

A company with long-term debt of 80, lease obligations of 20, total assets of 1,000, and total liabilities of 350 has a:

• A)Total debt ratio of approximately .10
• B)Total debt ratio of approximately .23
• C)Long-term debt ratio of approximately .15
• D)debt-to-equity ratio of approximately .15 Equity = 1000 - 350 = 650

---

Definitions:

Management Objectives

Specific goals set by a management team to guide the operations and direction of a company or organization.

Compressed Workweek

An alternative work schedule in which employees work fewer than the normal five days a week but still put in a normal number of hours per week.

Peter Drucker

An Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

Telework Centre

A facility that offers infrastructure and services to enable people to work remotely, often located away from traditional office environments.