UTpaper

Free mock tests & test series

Question 81Asked in DSSSB TGT Computer Science (Technical), 12 Sep 2025, Shift 3 (5:00 PM)

What does a high Debt-to-Equity ratio typically indicate about a business?

  1. ALow profitability
  2. BHigher financial risk due to excessive borrowing
  3. CStrong liquidity position
  4. DEfficient asset management
Show answerHide answer

Correct answer: (B) Higher financial risk due to excessive borrowing

Explanation

The debt-to-equity ratio compares borrowed funds with owners' funds. A high ratio means heavy borrowing, with more fixed interest burden and higher financial risk.

From DSSSB TGT Computer Science PYQ (Technical), 12 Sep 2025, Shift 3 (5:00 PM)

This is question 81 of DSSSB TGT Computer Science PYQ (Technical), 12 Sep 2025, Shift 3 (5:00 PM). See all questions of this paper with answers, or attempt the paper as a timed online test to get your score and all-India rank.