If a Company Is Financing More Assets with Debt Than

question 122

Multiple Choice

If a company is financing more assets with debt than with equity, then the:

• A)debt to equity ratio will be more than 1.
• B)debt to equity ratio will be between 0 to 1.
• C)debt to equity ratio will be equal to 1.
• D)debt to equity ratio will be negative.

---

Definitions:

Componential Intelligence

A facet of Sternberg's Triarchic Theory of Intelligence that involves analytical problem-solving abilities, including the ability to evaluate, analyze, and compare.

Contextual Intelligence

Contextual intelligence is the ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.

Metacognition

The knowledge or awareness of one’s own cognitive processes, and the ability to monitor and control those processes.

Tacit Knowledge

Knowledge that is difficult to transfer to another person by writing it down or verbalizing it, often gained through personal experience.