The ________ Ratio Is a Measure of a Company's Ability

question 43

Multiple Choice

The ________ ratio is a measure of a company's ability to make the interest payments on its debt.

• A)debt-to-net worth
• B)times-interest-earned
• C)net sales-to-working capital
• D)net profit-to-equity

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Definitions:

Quantity of Pollution

This term refers to the amount or volume of pollutants released into the environment, typically measured in terms of mass per unit time.

Marginal Social Cost

The additional cost imposed on society due to the production or consumption of one more unit of a good or service.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and a product that is homogenous across suppliers, leading to price competition and efficiency.

External Benefits

Benefits from a transaction or activity that accrue to others not directly involved in the transaction or activity.