All of the following statements regarding the ratio of liabilities to stockholders' equity are true except

A. the lower this ratio, the better able a business is to withstand poor business conditions and pay creditors

B. the higher this ratio, the better able a business is to withstand poor business conditions and pay creditors

C. sole proprietorships can use this ratio but substitute total owner's equity for total stockholders' equity

D. a ratio of 1 indicates that liabilities equal stockholders' equity