The _____ measures the extent to which a firm relies on debt to meet its financing needs.
A) liquidity ratio
B) activity ratio
C) leverage ratio
D) profitability ratio

Name: The _____ measures the extent to which a firm relies on debt to meet its financing needs. A) liquidity ratio B) activity ratio C) leverage ratio D) profitability ratio
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Question

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The leverage ratio measures the amount of debt a company has relative to its assets or equity, and is used to evaluate a company's level of financial risk.

The _____ Measures the Extent to Which a Firm Relies