If the Times Interest Earned Ratio

question 134

Multiple Choice

If the times interest earned ratio

• A)Increases,risk increases
• B)Is under 1.5,risk decreases
• C)Is over 1.5,risk increases
• D)Increases,risk decreases
• E)Increases and/or is under 1.5,risk decreases

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Definitions:

Price Floor

A government or regulatory imposed minimum price above which a particular good or service cannot be traded.

Shortage/Surplus

A market condition where the quantity of a good supplied is less/more than the quantity demanded at the market price.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from prices that are deemed too high.

Shortage/Surplus

A shortage occurs when demand exceeds supply, whereas a surplus happens when supply exceeds demand.