Reference no: EM133111610
Questions -
Q1. Our company had a debt to equity ratio of 40% last year. Equity has remained static at €200 million but a new loan has increased the ratio for this year to 55%. What is the value of the new loan?
a. €20 million
b. €30 million
c. €25 million
d. €15 million
Q2. Which of the following conditions would describe a business segment?
a. A corporation who is using a business segment is based on competition instead of diversification.
b. A business segment can be regarded as a company that operates in several different industries.
c. Each business segment's expenses and revenues are not accounted for separately.
d. A large corporate may have several segments and each business segment produces similar products.
Q3. Which of the following conditions would not indicate that two business segments should be classified as a single operating segment?
a. They have similar amounts of intersegment revenues or expenses.
b. They have similar production processes.
c. They have a similar distribution of products.
d. They have similar products or services.