Use This Information to Answer the Following Questions

question 5

Multiple Choice

Use this information to answer the following questions:
Hard-up Ltd has a current ratio of 0.75. Its current liabilities amount to $200,000. It borrows $75,000 from a finance company, repayable in 5 years.
-What is the effect of the loan on working capital?

• A) There is no effect.
• B) There is an increase of $75 000.
• C) There is a decrease of $75 000.
• D) It cannot be determined from the above information.

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Definitions:

Company Research

Company research is the process of gathering and analyzing information about a company, including its industry, competition, financial health, and market position, for the purpose of making informed decisions or assessments.

Screening Interviews

A preliminary step in the hiring process where candidates are quickly assessed to determine if they meet the basic requirements for a job.

Panel Interview

An interviewing technique where a candidate is evaluated and questioned by multiple interviewers or a group of people at the same time.

Active Listening

Involves fully concentrating, understanding, responding, and then remembering what is being said.