Identify the Three Basic Forms of Business Organizations

question 146

Essay

Identify the three basic forms of business organizations.

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Definitions:

Debt-To-Equity Ratio

A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity, indicating the proportion of equity and debt used to finance a company's assets.

Dividend Payout Ratio

A financial ratio that measures the proportion of earnings paid out as dividends to shareholders.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of shareholders' equity and debt used to finance a company's assets.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.