When a company rely on more debt, the value of the company will fell down at the perception of potential investors.
To determine the risk of investments, investors often compared the ratio between total assets and total debts (assets to debt ratio). Companies with low assets to debt ratio is regarded as a risky investment because it indicates that the company still has not enough capability to generate enough profit to buy its own assets
<u>Answer: </u>Strengths and weaknesses
<u>Explanation:</u>
Situational analysis for a company is determined by the internal and external factors which can be said as SWOT analysis. Here the internal factors are strengths and weakness of the company. While the external factors are opportunities and threats. Situational analysis is an element of the marketing plan.
These internal and external factors show how the sales and profit of the company is affected in the market. The internal components of the company are helpful to identify the ways the company can improve its operations.
The correct answer the demand for rides being highly elastic.
When demand is very elastic, lowering the price leads to an increase in overall income. The elasticity of demand is the change in demand that occurs when another economic component, such as price or income, changes.
Inelastic demand occurs when the demand for a commodity or the service stays constant despite price changes. Elastic commodities include luxury items as well as some foods and beverages because price variations impact demand. An elastic demand curve is one in which the amount sought for a particular commodity is responsive to price fluctuations.
Therefore, the correct answer is c. the demand for rides being highly elastic.
To know more about elastic demand click here:
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Answer: carriage forward means delivery is being laid by the buyer. Carriage paid means delivery is paid by the seller.
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