Which of the Following Statements Is True of Debt-To-Equity Ratio

question 78

Multiple Choice

Which of the following statements is true of debt-to-equity ratio?

• A) It measures the total cost of manpower relative to the organizations total productivity.
• B) It measures how much money a company can safely borrow over long periods of time.
• C) It measures the cost of employee benefits relative to individual productivity.
• D) It measures the organization's profitability against its productivity.
• E) It measures how much money a company can safely lend over long periods of time.

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Definitions:

Income

The total revenue received by an entity from its operational and non-operational activities during a specific time period.