Which of the Following Four Types of Firms Can Safely

question 8

Multiple Choice

Which of the following four types of firms can safely use a high degree of leverage?

• A) A firm with a high proportion of fixed tangible assets (out of total assets)and stable sales revenue
• B) A firm with a high proportion of fixed tangible assets (out of total assets)and declining sales revenue
• C) A firm with a low proportion of fixed tangible assets (out of total assets)and growing sales revenue
• D) A firm with a low proportion of fixed tangible assets (out of total assets)and declining sales revenue

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Definitions:

Benzene

A colorless, flammable liquid hydrocarbon with a distinct sweet smell, known for its carcinogenic properties and widespread use as a precursor in the manufacture of various chemicals.

Toluene

A colorless, water-insoluble liquid hydrocarbon with a sweet smell, used as an industrial solvent and in the production of benzene.

Stereogenic Center

An atom in a molecule, often carbon, that is connected to four different groups, giving rise to stereoisomers due to the spatial arrangement of these groups.