Which of the following is a correct statement regarding "coverage ratio?"
a) It measures how much of a company's revenue, as it travels down the "waterfall," is available to pay interest relative to the amount of interest that must be paid.
b) All else the same, a higher ratio makes creditors feel more secure that they will be paid.
c) The more volatile the industry that the company is in, the higher the coverage ratio necessary for creditors to feel a certain amount of security.
d) All of the above
Answer: d) All of the above
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Which of the following is characteristic of the early majority customer?
A) are conservative and wait for the product to reach full maturity B) value the product's benefits, but are unwilling to suffer the defects often inherent in early models C) relish innovation to the point of overlooking initial defects in new products D) are highly conservative and risk averse often form niche markets
Issues addressed in an LLC operating agreement include all but which of the following?
A) member responsibilities B) voting rights C) management D) articles of incorporation