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:

Fungal Infection

A disease condition caused by the growth of fungi in or on the body, leading to symptoms like itching, rashes, or more severe systemic issues.

Contagious

Having a disease that can easily be transmitted to others.

Lesions

Abnormal changes or damage in body tissues, organs, or skin, often visible as sores or wounds.

Parasites

Species that reside within or on a host organism, obtaining their nourishment to the detriment of their host.