A retailer's liabilities are very low relative to its assets.The retailer has ________.
A) low financial leverage
B) low fixed assets
C) high asset turnover
D) low net worth

Question

Quizplus · Accepted Answer

A retailer's low liabilities relative to its assets indicates it has low financial leverage, meaning it relies less on debt financing and has a stronger financial position. This does not necessarily imply low fixed assets, high asset turnover or low net worth.

A Retailer's Liabilities Are Very Low Relative to Its Assets