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Author Question: Which of the following characterizes a highly leveraged company? A) high total assets relative to ... (Read 185 times)

vicotolentino

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on: Jul 6, 2018
Which of the following characterizes a highly leveraged company?
 
  A) high total assets relative to total debt
  B) high total debt relative to total assets
  C) high total debt relative to inventories
  D) high total interest payments relative to total debt

Question 2

Chilean textile unions are allowed to participate in collective bargaining, but miner and carpenter unions are prohibited from the activity.
 
  Indicate whether this statement is true or false.


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atrochim

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Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: B
Explanation: A leveraged company takes on too much debt relative to the amount of assets it has. Leverage has nothing to do with inventories and it is not a measure of interest to the amount of money a company borrows.

Answer to Question 2

Answer: FALSE


vicotolentino

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Reply 2 on: Jul 6, 2018
Gracias!

nathang24

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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