Which of the Following Factors Are Not Taken into Consideration

question 52

Multiple Choice

Which of the following factors are not taken into consideration by bond rating companies when evaluating a bond?

• A) Fixed charge coverage
• B) Debt-to equity ratio
• C) Liquidity ratio
• D) Significance of the company within the industry
• E) Bond rating companies take into consideration all of the above features

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Definitions:

Public Good

A product that is non-excludable and non-rivalrous in consumption, meaning it is available to all members of society without depletion.

Nonrival

Refers to a good where one person's use does not reduce the amount available for others.

Nonexcludable

A characteristic of goods where it is difficult or impossible to prevent people from using the good once it has been provided.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to every individual without diminishing availability to others, such as national defense, public parks, and clean air.