Leverage Ratios Measure

question 95

Multiple Choice

Leverage ratios measure:

• A) The speed of changing assets into cash.
• B) The degree to which a firm relies on borrowed funds in its operations.
• C) How effectively a firm is using its various resources to achieve profits.
• D) How well a company converts its resources to profits.

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Definitions:

Angiotensinogen

A glycoprotein produced by the liver that is the precursor to angiotensin, playing a key role in blood pressure regulation.

Angiotensin I

Peptide derived when renin acts on angiotensinogen.

Renin

An enzyme secreted by the kidneys that plays a crucial role in the body's regulation of blood pressure.

Angiotensin II

A peptide hormone that causes blood vessels to constrict and blood pressure to increase, part of a vital mechanism regulating blood pressure.