Quiz: Gearing Ratios and Financial Stability
AQA A-Level Business (7132)
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Building on what you've learned about financial ratios, let's test your understanding of gearing ratios and how they relate to financial stability!
What does the gearing ratio measure?
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Which of the following are impacts of high gearing? (Select all that apply)
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A gearing ratio above {{blank0}}% is typically considered high, indicating substantial reliance on {{blank1}}.
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Match the items on the left with their correct pairs on the right
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Calculate the gearing ratio if a business has £400,000 in debt and £600,000 in equity.
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Which of the following industries is likely to have high gearing?
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What factors can influence a business's gearing ratio? (Select all that apply)
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The {{blank0}} ratio is important for assessing whether a business is financially {{blank1}}.
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