Use This Information to Answer the Following Questions

question 23

Multiple Choice

Use this information to answer the following questions:
Hard-up Ltd has a current ratio of 0.75. Its current liabilities amount to $200,000. It borrows $75,000 from a finance company, repayable in 5 years.
-What is the effect of the loan on the debt-to-equity ratio?

• A) There is an increase.
• B) There is a decrease.
• C) There is no effect.
• D) It cannot be determined from the information provided.

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Definitions:

Chromosomes

Rod-shaped structures composed of genes that are found within the nuclei of cells.

Genetic Factors

Elements within an organism's genes that can influence its traits, behaviors, and susceptibility to certain conditions or diseases.

Infertility

Refers to the inability of a person to reproduce by natural means, characterized by a failure to conceive after one year of regular, unprotected sexual intercourse.

Sperm

Male reproductive cells responsible for fertilization in sexual reproduction.