Which of the Following Is a True Statement

question 22

Multiple Choice

Which of the following is a true statement?

• A) Sectors of the U.S. economy that tend to have quite variable income streams also carry the highest D/E ratios.
• B) Sectors of the U.S. economy that tend to have quite variable income streams also carry the lowest D/E ratios.
• C) Conglomerates tend to have high, unstable income streams.
• D) Utilities have variable income streams and carry low D/E ratios.

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Definitions:

Optimal

The most favorable condition or level of efficiency that a system, selection, or outcome can achieve under given constraints.

Collection Float

The time interval between when a payment is deposited and when funds become available in the company’s account, affecting cash flow.

Cheques

Written, dated and signed instruments that direct a bank to pay a specific sum of money to the bearer.

Disburses

The act of paying out or distributing funds, typically related to the operational expenses or investment payouts of a company.