Which of the Following Statements Is True of the Debt

question 29

Multiple Choice

Which of the following statements is true of the debt to equity ratio?

• A)The higher the debt to equity ratio,the lower the company's financial risk.
• B)The higher the debt to equity ratio,the greater the company's financial risk.
• C)If the debt to equity ratio is greater than 1,the company is then financing more assets with equity than with debt.
• D)If the debt to equity ratio is less than 1,the company is then financing more assets with debt than with equity.

---

Definitions:

Play in The Street

Engaging in recreational activities or games in a roadway, often seen in residential areas with limited traffic.

Spanking

A form of discipline that involves striking the buttocks of another person to cause physical pain, often used as punishment for children.

Permissive

A parental approach that features minimal expectations paired with a high level of attentiveness.

Effective Punishment

A disciplinary measure that is immediate, consistent, and proportionate to the behavior, leading to the desired change in behavior.