Which of the Following Statements Is(are) True

question 60

Multiple Choice

Which of the following statements is(are) true?

• A)Debt-to-equity and debt-to-asset ratios measure capital structure and vary widely among industries
• B)Debt-utilization ratios alone do not measure a firm's ability to meet its cash obligations
• C)DuPont analysis considers the impact of debt on the profitability of the firm
• D)Two of the above are true

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Definitions:

Building Corporation

A company engaged in the construction of buildings, ranging from residential to commercial projects.

Business Judgment Rule

A principle that protects corporate directors and officers from liability for decisions made in good faith and believed to be in the best interest of the company.

Takeover Attempt

An effort by one company or entity to acquire control over another, often involving the purchase of a significant share of the target company's stock.

Liquidation Process

The process of closing a business, selling its assets, and using the proceeds to pay off its debts, with any remaining funds distributed among shareholders.