Which of the Following Statements Correctly Describe Interest Cover

question 18

Multiple Choice

Which of the following statements correctly describe interest cover?

• A) The inverse of interest cover is capital gearing.
• B) Interest cover = (Profit before interest and tax)/(Interest charges)
• C) Interest cover = (Interest charges)/(Profit before interest and tax)
• D) The inverse of interest cover is income gearing.

Understand the benefits and impacts of effective sourcing decisions.

Apply concepts of supply chain management to real-world scenarios.

Analyze demand distributions to make informed supply chain decisions.

Calculate expected understock quantities in supply chain scenarios.

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Definitions:

Decisions

The conclusion or resolution reached after consideration.

Uncertainty Avoidance

A cultural dimension that describes the extent to which people in a society are uncomfortable with ambiguity and uncertainty.

Entrepreneurship

The process of designing, launching, and running a new business or venture.

Primary Dimension

Fundamental or essential aspects or elements of a subject, object, or concept.