If a business is making use of too much debt, the value of proprietary ratio would be ____

Higher

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Lower

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Equal to 1

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All of these

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Solution

The correct option is B
Lower

A lower proprietary ratio indicates that a business may be making use of too much debt.

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Similar questions

Q. If a business is making use of too much debt, the value of proprietary ratio would be .

Q. A/an proprietary ratio means that a company has more equity compared to debt.

If the proprietary ratio is high, this indicates that a company has a sufficient amount of equity to support the functions of the business. State true or false.

For proprietary ratio, a value closer to zero indicates a _________________ and is not favourable for the firm.

Q. Proprietary Ratio may be expressed as ___________________.

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If a business is making use of too much debt, the value of proprietary ratio would be ____

The correct option is B Lower A lower proprietary ratio indicates that a business may be making use of too much debt.

The correct option is B
Lower

A lower proprietary ratio indicates that a business may be making use of too much debt.