Final answer:
Term 5/20 Vanderhyde Kennel relates to the Leverage ratio in business. The Leverage ratio measures the extent to which a company uses debt to finance its assets.
Step-by-step explanation:
Term 5/20 Vanderyde Kennel relates to the Leverage ratio in business. The Leverage ratio measures the extent to which a company uses debt to finance its assets. It indicates the proportion of a company's funding that comes from debt compared to equity. In this case, the ratio is calculated by dividing the total debt of Vanderhyde Kennel by its total assets, and the result is 5/20.
The Leverage ratio is an important financial indicator that helps assess a company's financial risk. A higher Leverage ratio indicates a higher level of debt, which means the company is more vulnerable to economic downturns or changes in interest rates. Conversely, a lower Leverage ratio suggests a more conservative financial structure with less reliance on borrowed money.