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Simple Interest Is the Interest Computed Based on the Principle

question 83

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Simple interest is the interest computed based on the principle, excluding previously earned interest.


Definitions:

Thin Capitalization

A financial situation in which a company has a high level of debt compared to its equity.

Debt-to-Equity Ratio

A financial metric that shows the comparative ratio of debt to shareholders' equity utilized to fund a company's assets.

Subsidiary Company

A company that is completely or partially owned and wholly controlled by another company, known as the parent company.

Corporation Law

The body of law that governs the formation, operation, and dissolution of corporations, including their rights and obligations.

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