Financial Leverage Is Best Measured by Which of the Following

question 57

Multiple Choice

Financial leverage is best measured by which of the following ratios?

• A)The debt to equity ratio.
• B)The return on equity ratio.
• C)The times interest earned ratio.

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Definitions:

Audience Effect

The influence that the presence of others has on an individual's performance or behavior.

Drive Theory

A psychological framework suggesting that motivation arises from biological needs that drive behavior to satisfy them.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically showing improved performance on simple or well-rehearsed tasks.

Social Presence

The degree to which a person feels that another person, through mediated communication, appears to be physically present.