company prefers to have a high debt ratio because that means that the company has plenty of current assets to pay current liabilities.

Name: company prefers to have a high debt ratio because that means that the company has plenty of current assets to pay current liabilities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A high debt ratio indicates that a company has a high level of debt compared to its assets, not necessarily that it has plenty of current assets to pay current liabilities.

Company Prefers to Have a High Debt Ratio Because That