A Capitalisation Ratio of 2:1 Compared to 2

question 21

Multiple Choice

A capitalisation ratio of 2:1 compared to 2.5:1 means:

• A) a greater dependency on debt.
• B) a lesser dependency on debt.
• C) a lower level of gearing.
• D) a higher level of equity.

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Definitions:

Hypermarkets

Large retail spaces combining a supermarket and a department store, offering a wide range of products under one roof.

Supercenters

Large retail establishments that combine a supermarket and a department store, offering a wide variety of goods and services.

Outlet Stores

Retail stores that sell products directly from manufacturers, usually at discounted prices.

Bargain Shopping

The act of seeking out products that are available at a lower price or on sale, aiming to save money on purchases.