Which of the following circumstances may increase a company's leverage?

I. The company borrows to buy back a retiring owner's stock in the company Il. The company shifts its liabilities from mostly long-term to mostly current Ill. The company increases its net worth by retaining profits without increasing assets IV. The company has three years of losses

A. I&Il

B. 11& Ill

c. 1& IV

D. II1 & IV

Answers the question: How much could current assets shrink in value from balance sheet amounts before they would be inadequate to cover current liabilities?

A. Quick Ratio

B. Current Ratio

c. Working Capital

D. Debt-to-Worth

Of the following businesses, which is most likely to have the highest percentage of its assets in the form of fixed assets?

A. A company that makes auto parts

B. A company that distributes beverages

C. A company that sells children's clothing

D. A company that provides decorating services