The Small Business with a High Debt-To-Net Worth Ratio Has

question 7

True/False

The small business with a high debt-to-net worth ratio has more borrowing capacity than a firm with a low ratio.

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Definitions:

Forged Indorsement

An unauthorized signature on a negotiable instrument, such as a check, meant to transfer the instrument’s ownership.

Conversion

The unauthorized act of possessing or disposing of someone else's property as if it were one's own, infringing the owner's rights.

Cashed Check

A check that has been presented to a bank or financial institution and exchanged for the equivalent amount in cash, indicating the check has been successfully processed.

Presentment Warranty

A guarantee made to the person who accepts or pays a negotiable instrument that certain facts are true as of the date of its transfer.