Answer:
B. The balance of payments is favorable
Explanation:
Answer: d.have adequate protection against a potential drop in earnings jeopardizing their interest payments
Explanation:
The Times Interest Earned Ratio is a measure that allows for the analysis of if a company can keep up it's debt payments.
It is calculated by dividing the Earnings before Interest and Tax by the Interest Expense of the debt.
The higher the number, the better because it means that they can keep up debt payments several times over.
As Debtors therefore, this figure is important because missing a debt payment is very bad for credit ratings and this matrix helps them realise if they can keep paying for debt even if their Earnings drop.
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Answer:
The correct answer is Risk.
Explanation:
Risk is exposure to a situation where there is a possibility of harm or danger. It is the vulnerability or threat to occur an event and its effects are negative and that someone or something may be affected by it. When a subject is said to be at risk, it is because he is considered to be at a disadvantage compared to something else, either because of his location or position; in addition to being susceptible to receiving a threat regardless of its nature.