Debt Service Coverage Measures

question 16

Multiple Choice

Debt service coverage measures

• A) The proportion of total assets financed by the owners of the organization
• B) How much of total expense the organization devotes to using funds
• C) The ability of the organization to meet its an annual interest payments
• D) The ability of the organization to meet its annual interest and principle payments
• E) The percentage of assets permanently financed by debt and ignores short-term liabilities

---

Definitions:

Nontariff Trade Barrier

Restrictive regulations and policies other than tariffs that countries use to control the amount of trade across their borders, including quotas, embargoes, or standards.

Domestic Subsidies

Financial aid provided by a government to support a domestic industry or sector, reducing the cost of production or services for national companies.

Import Licensing

A government policy requiring businesses to obtain official permission before importing certain goods, often used to control the amount of goods entering a country.

European Works Council

A body representing European employees, established to provide information and consultation rights on transnational matters affecting workers in the European Union.