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Which of the following statements is true about gearing for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013 - HSC - SSCE Business Studies - Question 20 - 2014 - Paper 1
Question 20
Which of the following statements is true about gearing for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013. (B) It i... show full transcript
Worked Solution & Example Answer:Which of the following statements is true about gearing for Kerry’s Warehouse in 2014? (A) It is better than industry average and has improved since 2013 - HSC - SSCE Business Studies - Question 20 - 2014 - Paper 1
Step 1
Identify the correct statement regarding gearing
Answer
To determine the correct statement about Kerry’s Warehouse gearing for 2014, we analyze the available options based on comparative metrics between the warehouse's gearing and the industry average.
As per the marking scheme, option (D) is correct: 'It is worse than industry average and has worsened since 2013.' This indicates that not only is Kerry's Warehouse performing below the industry standard, but its performance relative to the prior year has also declined.
In conclusion, based on the provided options and the relevant financial analysis, the true statement about Kerry’s Warehouse gearing in 2014 is option (D).