Which of These Are Alternative Measures of Gearing

question 12

Multiple Choice

Which of these are alternative measures of gearing?

• A)Total liabilities/total assets.
• B)Total liabilities/total owners' equity.
• C)Long-term liabilities/ total owners' equity.
• D)All are alternative measures of gearing.

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Definitions:

Instinct Theory

A view that explains human behavior as motivated by automatic, involuntary, and unlearned responses.

Homeostasis

The ability of a living organism to regulate its internal environment to maintain a stable, constant condition despite external changes.

Drive-Reduction Theory

The idea that a physiological need creates an aroused tension state (a drive) that motivates an organism to satisfy the need.

Maintain Homeostasis

The process by which living organisms regulate their internal environment to stabilize health and functioning, despite external changes.