________ ratios measure the extent to which an entrepreneur relies on debt capital rather than equity capital to finance a business.
A)Liquidity
B)Leverage
C)Operating
D)Profitability

Question

Quizplus · Accepted Answer

Leverage ratios, such as debt-to-equity and debt-to-assets ratios, measure the amount of debt a business has compared to its equity or assets. This indicates the level of financial risk, as high levels of debt can increase the likelihood of bankruptcy if the business struggles to make debt payments.

________ Ratios Measure the Extent to Which an Entrepreneur Relies