The Times Interest Earned Ratio Is a Measure Of

question 24

Multiple Choice

The times interest earned ratio is a measure of:

• A)A company's ability to pay its operating expenses on time.
• B)A company's ability to pay interest incurred even if sales decline.
• C)A company's profitability.
• D)The relation between income and debt.
• E)The relation between assets and liabilities.

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Definitions:

Parent-Country National

An employee who is a citizen of the country where the multinational company has its headquarters, working abroad in a foreign branch or subsidiary.

Host-Country National

An individual from the country where a foreign subsidiary is located and who works for that subsidiary.

Expatriates

Individuals who live and work outside their native country, often for professional assignments.

Expatriate

An individual who resides in a country other than their native country, often for work purposes.