All of the Following Statements Regarding the Ratio of Liabilities

question 67

Multiple Choice

All of the following statements regarding the ratio of liabilities to owner's equity are true except:

• A) A ratio of 1 indicates that liabilities equal owner's equity.
• B) Corporations can use this ratio but substitute total stockholders' equity for total owner's equity.
• C) The higher this ratio is, the better able a business is to withstand poor business conditions and pay creditors.
• D) The lower this ratio is, the better able a business is to withstand poor business conditions and pay creditors.

Understand the opportunity for civic development and professional identity formation during internships.

Analyze the complexity of organizational dynamics and their impact on internship experiences.

Understand the dynamics and significance of conflict resolution styles.

Comprehend the importance and impact of diversity in interpersonal and professional settings.

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Definitions:

Moral Obligation

A duty or commitment that is not legally enforceable but is based on ethical or moral considerations.

Preexisting Duty Rule

A legal principle that an existing obligation or duty cannot serve as consideration for a new contract.

Rescission

The act of canceling a contract, returning both parties to their pre-contractual situation.

Mutually Agree

A situation in which two or more parties come to a common understanding or consent on a matter.