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.

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Definitions:

Quasi-Greening

Practices by companies that are promoted as being environmentally friendly, often with the intention of gaining favor with consumers, but which may not have substantial environmental benefits.

Consumerism Movement

A social and economic order that encourages the acquisition of goods and services in ever-increasing amounts, and the movement advocating for consumer rights and protections.

Cultural Heritage

The heritage consisting of tangible objects and intangible qualities passed down from past generations, preserved today, and given to future generations for their benefit.

Ecotourism

A form of sustainable travel that supports the conservation of ecosystems and the well-being of local people.