Which of the Following Would Increase the Likelihood That a Company

question 52

Multiple Choice

Which of the following would increase the likelihood that a company would increase its debt ratio,other things held constant?

• A)an increase in costs incurred when filing for bankruptcy
• B)an increase in the corporate tax rate
• C)an increase in the personal tax rate
• D)the company's stock price hitting a new low

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Definitions:

Relative Worth

refers to the value or importance of something in comparison to other things, often in contexts of evaluating contributions or rewards.

Development Aid

Financial aid given by governments and other agencies to support the economic, environmental, social, and political development of developing countries.

United Nations

An international organization founded in 1945, designed to promote peace, security, and cooperation among the world's nations.

Richest Nations

Countries that have the highest Gross Domestic Product (GDP) per capita, indicating a high level of economic prosperity and standard of living.