The Lower the Debt to Equity Ratio,the Greater the Financial

question 6

True/False

The lower the debt to equity ratio,the greater the financial risk the company is taking.

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Definitions:

Plant Size

Refers to the scale or capacity of a manufacturing facility or industrial plant, affecting its potential output levels and efficiency.

Output Units

The measured quantity of goods or services produced by a firm or industry.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Extensive Range

A wide scope or variety of something, covering a broad spectrum.