In Which Countries Would You Expect Companies to Have the Lowest

question 94

Multiple Choice

In which countries would you expect companies to have the lowest leverage ratios?

• A) Countries with very high tax rates.
• B) Countries that tend to subsidize key industries and protect them from failure.
• C) Countries where creditors have very strong legal protection.
• D) Countries where the market value of companies is high compared to their book values.

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Definitions:

Communication

The process of exchanging information or ideas through various means, including speech, writing, visual images, or digital platforms.

Exchange

The process by which two or more parties trade goods, services, or other values to the mutual benefit of both or all.

Information

Data that is processed, organized, structured, or presented in a given context to make it meaningful or useful.

Competitive Advantage

A condition or circumstance that puts a company in a favorable or superior business position compared to its competitors.