Which of the Following Is Considered a Good/safe Rule-Of-Thumb Debt

question 121

Multiple Choice

Which of the following is considered a good/safe rule-of-thumb debt ratio for businesses?

• A) 1.5 or above
• B) .6 or below
• C) 1.0 or above
• D) .8 or below

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Definitions:

Vendors And Suppliers

External organizations or individuals that provide goods or services needed for a business to operate or for a project to be completed.

Providers

Entities or individuals that supply services or goods to others, often within a professional or commercial context.

Commodities

Economic goods or products before they are processed and/or given a brand name, such as grain, cotton, or raw minerals.

Fixed Unit Price Contract

A contract agreement where the payment is based on a specific price per unit of work completed.