A Debt Ratio of 0.5 Indicates

question 83

Multiple Choice

A debt ratio of 0.5 indicates

• A) The balance on the mortgage = 50% of the value of the home.
• B) For every dollar of net worth, debt equals $0.50.
• C) For every dollar of debt, net worth equals $0.50.
• D) For every dollar of take-home pay, monthly credit payments equal $0.50.
• E) For every dollar of assets, monthly credit payments equal $0.50.

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Definitions:

Compensation

The complete sum of financial and non-financial compensation given to a worker by their employer in exchange for the work done.

Broadbanding

A method of salary structure that consolidates a large number of pay grades into fewer, wider bands.

Hybrid Wage System

A compensation strategy that combines elements of both hourly wages and salary, potentially including performance bonuses or commissions.

Administrative Employees

Employees who are responsible for office functions and tasks; they typically engage in non-manual work related to the general business operations of an organization.