[amp_mcq option1=”Equity” option2=”Long term debt” option3=”Both A and B” option4=”None of the above” correct=”option3″]<\/p>\n
The correct answer is: C. Both A and B<\/strong><\/p>\n Capital employed is the total amount of money that a company has available to invest in its business. It is calculated by adding together the company’s equity and long-term debt.<\/p>\n Equity is the money that the company has raised from its shareholders. This can be in the form of ordinary shares, preference shares, or retained earnings.<\/p>\n Long-term debt is the money that the company has borrowed from lenders. This can be in the form of bonds, loans, or mortgages.<\/p>\n Capital employed is an important measure of a company’s financial strength. It shows how much money the company has available to invest in its business. A high level of capital employed indicates that the company is well-funded and has the potential to grow. A low level of capital employed indicates that the company may be struggling to finance its operations.<\/p>\n Capital employed is also used to calculate a number of other financial ratios, such as return on capital employed (ROCE) and return on equity (ROE). These ratios are used to assess the profitability of a company.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Equity” option2=”Long term debt” option3=”Both A and B” option4=”None of the above” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-52223","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n