Which Factor in the Z-Score Model Will Most Affect the Likelihood

question 63

Multiple Choice

Which factor in the Z-score model will most affect the likelihood of bankruptcy predicted?

• A) working capital to total assets ratio
• B) EBIT to total assets ratio
• C) market value of equity to book value of equity ratio
• D) retained earnings to total assets ratio

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Definitions:

Implicit

Something that is implied or understood though not directly expressed or stated.

Wisdom

The ability to apply knowledge, experience, understanding, and insight to make sound judgments and decisions.

Apathetic

Showing or feeling no interest, enthusiasm, or concern towards subjects or matters, often characterized by a lack of emotion or motivation.

Conscientious

A personality trait characterized by a high level of care, diligence, and a sense of duty.