_________ Is a Measure of an Organisation's Use of Debt

question 37

Multiple Choice

_________ is a measure of an organisation's use of debt to finance its assets.

• A)Liquidity
• B)Leverage
• C)Activity
• D)Profitability

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Definitions:

Sufficient Cash

A condition where a company has enough liquid funds to meet its immediate and short-term obligations.

Cumulative Preferred Stock

Cumulative Preferred Stock is a type of preferred stock where dividends accumulate if not paid in a given year, prioritizing these dividends over common stock dividends in future payments.

Annual Dividend

The total dividend payment a company distributes to its shareholders for a year, often quoted on a per-share basis.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by the issuing company.