A Decrease in the Ratio of Liabilities to Stockholders' Equity

question 43

True/False

A decrease in the ratio of liabilities to stockholders' equity indicates an improvement in the margin of safety for creditors.

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Definitions:

Last Clear Chance

A legal doctrine allowing a plaintiff to recover damages even if they were partly at fault, if the defendant had the last opportunity to avoid the accident.

Voluntarily Assumed Risk

A legal principle where an individual knowingly exposes themselves to a known danger or risk.

Negligent

Negligence is the failure to exercise appropriate and ethical care expected to be exercised amongst specified circumstances, leading to unintended harm or damage.

High Beam

The brighter, focused setting of a vehicle's headlights designed to illuminate long distances, used when no oncoming traffic is present.