If the Times Interest Earned Ratio

question 52

Multiple Choice

If the times interest earned ratio:

• A)Increases,then risk increases.
• B)Increases,then risk decreases.
• C)Is greater than 1.5,the company is in default.
• D)Is less than 1.5,the company is carrying too little debt.
• E)Is greater than 3.0,the company is likely carrying too much debt.

---

Definitions:

Facility Locations

The process of determining the most optimal location for a company’s operations, manufacturing, or services.

Closed-Loop System

A system that uses feedback to control the state or output of the system. It is designed to automatically adjust, correct, or compensate for changes to maintain the desired output.

Disintermediation

The removal of intermediaries in the supply chain, allowing producers to sell directly to consumers.

Delivery Of Products

The process of transporting goods from a seller to the purchaser’s location or making them available for collection.