A Firm That Takes on Too Much Long-Term Debt to Finance

question 6

Multiple Choice

A firm that takes on too much long-term debt to finance operations will see an immediate impact on its indicators of ________ financial leverage.

• A) short-term
• B) long-term
• C) relative
• D) comparable

---

Definitions:

Otitis

Inflammation of the ear, which can affect the outer, middle, or inner parts and can cause pain, fever, and sometimes, difficulty hearing.

Otosclerosis

A condition characterized by abnormal growth of bone in the middle ear, often leading to hearing impairment.

Ménière's Disease

A disorder of the inner ear characterized by episodes of vertigo, tinnitus, and hearing loss.

Otomycosis

A fungal infection of the ear, usually affecting the ear canal, characterized by pain, itchiness, and possible hearing loss.