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Question Practice

In which scenario might a company want a higher Debt-Equity Ratio?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Accounting Ratios
Question Bank

In which scenario might a comp...

Single Answer MCQ
Q-00082864

In which scenario might a company want a higher Debt-Equity Ratio?

1

When pursuing aggressive growth

2

To ensure stability

3

To lower financial risk

4

When investors demand lower returns

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