A firm with a low rating from the bond-rating agencies would have
A. a low times-interest-earned ratio.
B. a low debt-to-equity ratio.
C. a low quick ratio.
D. a low debt-to-equity ratio and a low quick ratio.
E. a low times-interest-earned ratio and a low quick ratio.
E. a low times-interest-earned ratio and a low quick ratio.
High values for the times interest and quick ratios and a low debt to equity ratio are desirable indicators of safety.
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Indicate whether the statement is true or false
If a bank pays a check after it is given a stop-payment order and has to reimburse its customer for the improperly paid check, ________.
A. it acquires partial rights of its customer against the person to whom it originally made payment B. it acquires all the rights of its customer against the person to whom it originally made payment C. the customer to whom payment was made will retain all the rights D. it will not acquire the rights arising from the transaction on which the check was based
What are the two types of locus of control?
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