Which of the Following Ratios Recognizes That Many Firms Lease

question 55

Multiple Choice

Which of the following ratios recognizes that many firms lease rather than buy a long-term asset?

• A)Fixed charge coverage ratio
• B)Times interest earned ratio
• C)Debt ratio
• D)Net profit margin
• E)Equity multiplier ratio

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Definitions:

Centre-of-Gravity

A method used in logistics and supply chain management to determine the best location for facilities based on minimizing transportation costs, considering the locations of suppliers, customers, and other factors influencing the total cost.

Quantitative Methods

A systematic empirical investigation of observable phenomena via statistical, mathematical, or computational techniques.

Labour Productivity

A measure of economic performance that indicates the amount of goods and services produced by one hour of labor.

Low Wages

Low wages refer to compensation that is significantly lower than the average for comparable work in a specific region, industry, or within a particular occupation.