The Debt Ratio Measures a Company's Overall Ability to Pay

question 85

True/False

The debt ratio measures a company's overall ability to pay its employees.

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Definitions:

Stocks

Financial instruments that signify ownership in a corporation and represent a claim on part of the corporation's assets and earnings.

Bonds

Bonds are debt securities issued by entities (such as governments, municipalities, or corporations) to raise funds, promising to repay the principal along with interest on a specified date.

Money Market

A financial market in which short-term (less than one year) debt securities are traded.

Debt Instruments

Financial contracts obligating the borrower to pay back the lender, including bonds, notes, and mortgages.