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question 26

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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 immediate effect of the loan on current net profit?


Definitions:

Benefits Administration

The act of developing, overseeing, and refreshing a benefits package for an employee, which encompasses health coverage, pension schemes, and additional advantages.

Rule-Based Activities

Tasks or procedures that are governed by formal rules or guidelines, often used to ensure consistency and compliance.

Confidential Activities

involve tasks, operations, or proceedings that are kept secret or private, often to protect sensitive information or for reasons of security and competitive advantage.

Outsourced

The practice of delegating certain business functions or services to external providers rather than handling them internally.

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