JAMB Commerce 2022 Objective — Question 24
Question 24 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2022 Objective paper, with the correct answer and a full explanation.
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24. When a company uses more loans than equity to finance its business, the company is said to be
- A. (A) bankrupt
- B. (B) solvent
- C. (C) highly gearedCorrect
- D. (D) in a strong liquid position
Explanation
A company that uses more loans to finance its activities is said to be highly geared.
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