If the Times Interest Ratio

question 191

Multiple Choice

If the times interest ratio:

• A)Increases,then risk increases.
• B)Increases,then risk decreases.
• C)Is greater than 1.5,then the company is in default.
• D)Is less than 1.5,the company is carrying too little debt.
• E)Is greater than 1.5,the company is likely carrying too much debt.

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Definitions:

Addiction

A chronic dysfunction of the brain system that involves reward, motivation, and memory, leading to compulsive engagement in rewarding stimuli despite adverse consequences.

Pleasure

is a state of satisfaction or joy, resulting from the attainment of what is considered pleasant or desirable.

Craving

A powerful and intense desire or longing for something, often referring to substances or experiences.

Pain

An unpleasant sensory and emotional experience associated with actual or potential tissue damage, or described in terms of such damage.