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:

Relative Market Share

A measure of a company's sales volume compared to its leading competitor in the same market.

Diversification Analysis

The process of assessing potential to spread investments or operations across different industries or product lines to reduce risk.

Growth Opportunities

Situations or initiatives that offer the potential for a business to expand its operations, increase revenue, or enhance profitability.

Market-Product Grid Framework

A strategic tool used to explore potential opportunities by correlating market segments (customer groups) with products or services.