Forming a Business with a High Debt-To-Equity Ratio Is an Example

question 77

Multiple Choice

Forming a business with a high debt-to-equity ratio is an example of:

• A)circumventing a statute.
• B)thin capitalization.
• C)creditor domination.
• D)looting.

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Definitions:

Maintaining Harmony

The act of keeping relationships or environments peaceful and cooperative.

Critically Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Storming Stage

A phase in group development characterized by conflict and competition as members assert their opinions and vie for positions within the group.

Resistance

Opposition to change, often stemming from fear, discomfort, or perceived threats to status or autonomy.