Which Type of Gearing Is Concerned with the Proportion of the Annual

question 9

Multiple Choice

Which type of gearing is concerned with the proportion of the annual income that is devoted to the prior claims of debt holders?

• A) Operating gearing
• B) Financial gearing
• C) Capital gearing
• D) Income gearing

---

Definitions:

Jurisdictional Ambiguity

The presence of unclear lines of responsibility within an organization.

Structural Conflicts

Arise due to the inherent structures within societies, organizations, or groups that create inequality or competition for resources, often leading to persistent disputes.

Department's Objectives

The specific goals or targets set by a department within an organization, aiming to guide its actions and measure its performance.

Dysfunctional Conflict

An unhealthy, destructive disagreement between two or more people.