The So-Called 'DuPont Formula' Defines Capital Employed As

question 20

Multiple Choice

The so-called 'DuPont formula' defines capital employed as:

• A) The sum of shareholders' equity plus long-term debt (including current portion).
• B) The sum of fixed assets net of depreciation and current assets net of provision for bad debt.
• C) Shareholder capital plus retained earnings,reserves (and provisions if applicable).
• D) The sum of net fixed assets plus working capital.

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Definitions:

Reasonable Buyer

A hypothetical person in the marketplace considered to be adequately informed, cautious, and not under any pressure to make a purchase.

Defects

Flaws or imperfections in products, property, or legal documents that can affect value or functionality.

Leasehold

A type of property interest that allows the leaseholder (tenant) to use and occupy land or property for a certain time, as dictated by a lease agreement.

Emergencies

Urgent situations that require immediate action due to a threat to health, life, property, or environment.