Which of the Following Statements Is True of the Debt

question 50

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 financing more assets with equity than with debt.
• D)If the debt to equity ratio is less than 1,the company is financing more assets with debt than with equity.

---

Definitions:

Manifest Function

The recognized and intended consequences of any social pattern, which contribute to its functioning.

Productive

Relating to or having the power to generate or produce goods, services, or results through effective use of resources.

Eminent Individuals

Eminent individuals refer to people who are highly distinguished or renowned in their fields or professions.

Menopause

The time in a woman's life, typically between 45 and 55 years of age, when menstrual cycles cease permanently, marking the end of reproductive capability.