If a Company Is Financing More Assets with Debt Than

question 120

Multiple Choice

If a company is financing more assets with debt than with equity,the ________.

• A) debt to equity ratio will be more than 1
• B) debt to equity ratio will be between 0 to 1
• C) debt to equity ratio will be equal to 1
• D) debt to equity ratio will be negative

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Definitions:

Commitment to the Goal

A dedicated and persistent effort towards achieving a specified objective or result.

Feedback

Information provided to individuals or groups about their performance or behavior, intended to guide future improvements or adjustments.

Performance

Refers to how well an individual, group, or entity carries out assigned tasks or duties.

Peer Pressure

The influence exerted by a peer group, encouraging individuals to change their attitudes, values, or behaviors to conform to group norms.