The Higher a Company's Debt Ratio Is, the Higher the Risk

question 44

True/False

The higher a company's debt ratio is, the higher the risk of a company not being able to meet its obligations.

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Definitions:

Iron Oxide

A chemical compound made up of iron and oxygen, known for its reddish color and common presence in rust and many types of soil and rocks.

Reddish Color

A color hue that resembles the tint of blood or the primary color red mixed with slight amounts of white or yellow.

Silica

Silicon dioxide (SiO2), appearing either as a relatively pure form in a mineral (e.g., quartz) or as a component in more chemically complex minerals and rocks.

Cube-Shaped Crystals

Solids with an atomic structure that forms into a cube shape, commonly observed in minerals such as pyrite and halite.