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متابعة

High degree of financial leverage means:

<p style="text-align:justify;"><strong><span>(a) High debt proportion,</span></strong></p> <p style="text-align:justify;"><strong><span>(b) Lower debt proportion,</span></strong></p> <p style="text-align:justify;"><strong><span>(c) Equal debt and equity,</span></strong></p> <p style="text-align:justify;"><strong><span>(d) No debt</span></strong></p>

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تم إضافة السؤال من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.
تاريخ النشر: 2014/09/20
Ahmed Abdi Mahad
من قبل Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

The relationship between total liabilities & total equity is called the debt to equity ratio.Itshows the proportion of total liabilities relative to the proportion of totalequity that is financing the company’s assets. Thus, this ratio measures financialleverage.

 If the debt to equity ratio is greater than1, then the company is financingmore assets with debt than with equity.

If the ratio is less than1, then the companyis financing more assets with equity than with debt.

The higher the debt to equityratio, the higher the company’s financial risk

So, choice A, high debt proportion is the answer

Malik Khalid Mahmood
من قبل Malik Khalid Mahmood , Regional Finance Manager , Leosons International FZ LLC

A) high availing of finance, which is not useful if you have no other backbone of business or other range of businesses.

Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

(a) .

هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟