You would like to borrow money three years from now to build a new building. In preparation for applying for that loan, you are in the process of developing target ratios for your firm. Which set of ratios represents the best target mix considering that you want to obtain outside financing in the relatively near future?
A. Times interest earned = 1.7; debt-equity ratio = 1.6
B. Times interest earned = 1.5; debt-equity ratio = 1.2
C. Cash coverage ratio = .8, debt-equity ratio=0.8
D. Cash coverage ratio = 2.6, debt-equity ratio = 0.3
E. Cash coverage ratio = .5, total debt ratio = 0.2
Ans: D. Cash coverage ratio = 2.6, debt-equity ratio = 0.3
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Which level of management is typically responsible for operational control?
a. first-line managers b. team leaders c. top managers d. middle managers
Baker's Hut is a coffee house based in Atlanta, Georgia. The proprietor of Baker's Hut has set out
a list of objectives for the establishment to achieve. Which of the following qualifies as a specific objective under the S.M.A.R. T objective framework? A) "Become the preeminent coffee house in the city through a robust commitment to quality." B) "Expand the range of our menu offerings by the end of the calendar year." C) "Increase the number of Baker's Hut coffee houses in underserved areas in Atlanta." D) "Provide training and opportunities for the staff to improve their skills."