Secured Creditors of a Company Demand a High Ratio of Pledged

question 286

Short Answer

Secured creditors of a company demand a high ratio of pledged assets to secured liabilities when (1)the values of the assets in liquidation are _______________ and (2)the likelihood of the company to meet its obligation from ___________________ is weak.

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Definitions:

Chi-square Test

A statistical procedure employed to evaluate whether a significant correlation exists between two variables that are categorical.

Minimum

The smallest or least amount allowable or possible in a given set of circumstances.

Maximum

The largest value in a given set of numbers or data points.

Range

The difference between the highest and lowest values in a dataset, offering a simple measure of data spread.