Using the Formula, Gearing Ratio = Long-Term Liabilities/ (Shareholders' Funds

question 4

Multiple Choice

Using the formula, gearing ratio = long-term liabilities/ (shareholders' funds + long-term liabilities) × 100/1, calculate the gearing ratio from the following information. Long-term liabilities $18m, Shareholders' funds $14m.

• A)128%.
• B)56%.
• C)78%.
• D)44%.

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Definitions:

Assimilation

The process by which individuals or groups of different backgrounds come to adopt the culture, beliefs, and practices of a larger community or society.

Organizational Culture

The shared values, beliefs, and practices of an organization's members that shape its social and psychological environment.

Tangible Assets

Physical and material assets owned by a company, such as buildings, machinery, and inventory, which have a defined monetary value and can be physically touched.

Knowledge

constitutes the facts, information, and skills acquired through experience or education, encompassing theoretical and practical understanding of a subject.