A High Debt Ratio

question 88

Multiple Choice

A high debt ratio:

• A)means that creditors provide a large percentage of the company's total financing.
• B)gives a small business more borrowing capacity.
• C)decreases the chances that creditors will lose money if the business is liquidated.
• D)decreases the creditor's interest in the business.

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Definitions:

Car Speeds

The rates at which cars travel, typically measured in miles per hour (mph) or kilometers per hour (kph).

Normal Model

A type of statistical distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.

Annual Snowfall

The total amount of snowfall recorded at a specific location over the course of a year.

Unusually Low

Describes values or measurements that are significantly lower than what is typical or expected within a given dataset or situation.