if the times interest earned ratio: multiple choice increases, then risk increases. increases, then risk…

Brief Explanations:

The times - interest - earned ratio measures a company's ability to pay interest on its debt. A higher ratio means the company has more earnings available to cover interest expenses, indicating lower financial risk. A ratio greater than 1.5 does not mean the company is in default. A ratio less than 1.5 does not mean the company has too little debt; rather, it may have difficulty covering interest payments. When the ratio increases, the company's ability to pay interest improves, so the risk decreases.

Answer:

B. Increases, then risk decreases.