Which of the Following Ratios Represents the Proportion of Borrowed

question 4

Multiple Choice

Which of the following ratios represents the proportion of borrowed funds used to acquire the company's assets?

• A) Return on assets
• B) Return on sales
• C) Debt ratio
• D) Current ratio

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Definitions:

Franchising

Permission to use another company’s trademarks, patents, copyrights, and expertise according to a strict template setting out the way it does business.

Importing

Purchasing goods or services from another country to be sold in a company’s home market.

Economic Factor

Any of the various elements that influence the economy of a region or country, such as inflation, employment rates, and GDP growth.

PEST Analysis

A crucial instrument for businesses, designed to pinpoint, examine, and track the wide-ranging environmental influences that could significantly affect a company's success.