Other things being equal, the higher the debt to equity ratio, the higher the risk of bankruptcy.Group startsTrue or False

An advantage of bond financing is that it does not affect shareholder control.Group startsTrue or False

The debt to equity ratio indicates:The net worth of the companyThe proportion of the company financed by lenders versus ownersA company's working capital funding gapThe liquidity of the company

Which one of the following statements is true?Group of answer choicesLow debt ratio means most of the assets are financed by debt.Low debt ratio means most of the assets are financed by equity.Too little debt will reduce the business’s long-term flexibility.High debt ratio means most of the assets are financed by equity.

The statement of stockholders' equity summarizes the changes in the balance in each stockholders' equity account over a period of time.Group startsTrue or False

When comparing the typical sole proprietorship and corporation, the form of business having higher assets and earnings is the corporation.Group startsTrue or False