Instead of Increasing Its Long-Term Debt by Borrowing Money to Purchase

question 74

Multiple Choice

Instead of increasing its long-term debt by borrowing money to purchase new stereo equipment, Jay's Jams Inc.decides to lease the equipment.How does this affect its long-term debt ratio?

• A)It will decrease
• B)It will increase
• C)It will remain unchanged
• D)Unknown without the amount of the lease obligation

---

Definitions:

Recruitment and Selection

Recruitment and Selection refer to the processes through which organizations identify, attract, screen, and hire candidates to fill job vacancies, ensuring the right fit between the job and the employee.

Company-Specific Human Capital

The unique knowledge, skills, and experience possessed by an organization's workforce that cannot easily be replicated by competitors.

Unique Culture

A distinctive set of customs, traditions, beliefs, and practices that characterize a specific group, organization, or society.

Geographic Location

Refers to the specific physical place where something is located, often considered in terms of its environment, features, and accessibility.