Which of the Following Is a True Statement

question 22

Multiple Choice

Which of the following is a true statement?

• A) Sectors of the U.S. economy that tend to have quite variable income streams also carry the highest D/E ratios.
• B) Sectors of the U.S. economy that tend to have quite variable income streams also carry the lowest D/E ratios.
• C) Conglomerates tend to have high, unstable income streams.
• D) Utilities have variable income streams and carry low D/E ratios.

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Definitions:

Law Of Equity

A system of law that supplements the statutory and common laws, aiming to achieve fairness and justice in cases where strict application of the law might result in an inequitable outcome.

Real Estate Agent

A certified individual who acts on behalf of sellers or buyers in property sales.

Agency By Necessity

A situation where an agent is granted emergency powers to act on behalf of another without their consent, due to unforeseen circumstances.

Principal

In law and finance, the individual or entity who authorizes another to act on their behalf; in bonds, it refers to the original amount of money borrowed or invested, excluding any interest.