If the Ratio of Total Liabilities to Total Assets Is

question 49

Multiple Choice

If the ratio of total liabilities to total assets is 0.5,long-term liabilities are $3,000,and equity is $5,000,then::

• A) you know that current liabilities must be $ 2,000.
• B) you know that current assets must be $400.
• C) you know that retained earnings must be $800.
• D) you know that preferred stock must be $400.

Identify conditions under which demand is considered elastic or inelastic.

Analyze the impact of price changes on quantity demanded for products with different elasticity levels.

Interpret the effects of elasticity on total revenue and expenditure.

Examine factors influencing the elasticity of demand for a product.

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Definitions:

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold.

Short-Term Debt

Debt obligations scheduled for repayment within one year.

Municipal Bonds

Debt securities issued by states, cities, counties, and other governmental entities to finance public projects, offering tax-exempt interest payments to investors.

Long-Term Debt

Borrowings that are due to be repaid more than one year in the future, often used for significant investments in the business.