Lu Lu's Catering Has a Debt Ratio Equal to

question 37

Multiple Choice

Lu Lu's Catering has a debt ratio equal to .3 and its competitor, Able's Bakery, has a debt ratio equal to .7. Determine the statement below that is correct.

• A) Able's Bakery has a smaller percentage of its assets financed with liabilities as compared to Lu Lu's.
• B) Higher financial leverage involves lower risk.
• C) Able's Bakery's financial leverage is greater than Lu Lu's.
• D) Able's Bakery's financial leverage is less than Lu Lu's.
• E) Lu Lu's has a higher risk from its financial leverage.

---

Definitions:

Ethical Principles

Guidelines and standards used to determine what is right and wrong in a moral sense, often applied in professional contexts.

Treatment Group

A group of individuals receiving specific interventions or therapy together, typically to address common issues or conditions.

Task Groups

Groups formed with the specific aim of accomplishing a defined task or project.

Influence Policy

The process of affecting or altering the development, adoption, or implementation of policies through various means of persuasion or advocacy.