The Amount of Debt and Equity Used by a Firm

question 14

Multiple Choice

The amount of debt and equity used by a firm to finance its operations is called the
Firm's:

• A)debt ratio
• B)working capital ratio
• C)capital structure
• D)financial position
• E)cash position

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Definitions:

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund unemployment benefits.

Payroll Taxes

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Social Security

A government program that provides financial assistance to retirees, disabled individuals, and survivors of deceased workers.