If the Times Interest Earned Ratio

question 130

Multiple Choice

If the times interest earned ratio:

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

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Definitions:

Labor Unions

Organizations formed by workers to protect their rights and interests, often through collective bargaining for better wages, working conditions, and benefits.

Wage Rates

The standard amount of pay given for work performed, typically expressed in terms of an hourly, daily, or piece rate.

Inclusive Unions

Labor unions that aim to represent and protect the interests of all workers, regardless of race, gender, or industry, promoting equal rights and opportunities.

Exclusive Unions

Exclusive unions refer to labor unions that represent a specific set of workers, often requiring membership as a condition for employment within certain industries.