Use the Table for the Question(s)below

question 19

Multiple Choice

Use the table for the question(s) below.
Statement of Financial Position

-If the above statement of financial position is for a retail company,what indications about this company would best be drawn from the changes in leverage between 2014 and 2015?

• A)The company's risk has decreased.
• B)The company's risk is unchanged.
• C)The company may have a problem in meeting borrowing obligations in the future.
• D)The company has excellent growth prospects.
• E)The company is bankrupt.

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Definitions:

Individualism

A moral, political, or social outlook that emphasizes the moral worth of the individual and the priority of personal independence and rights.

Ethical Standards

The criteria that guide the behavior of individuals and organizations, reflecting what is morally right and wrong.

Fairness, Equity

The quality of being impartial and just, and ensuring individuals receive what they deserve based on their needs, conditions, and contributions.

Compromise

A settlement of differences by mutual concessions or modification of demands.