GEARING Definition

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GEARING is the proportion of the capital employed of a company that is financed by lenders rather than shareholders.

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FRS is Federal Reserve System or Financial Reporting Standard.

FIXED COSTS are operating expenses that are incurred to provide facilities and organization that are kept in readiness to do business without regard to actual volumes of production and sales. Fixed costs remain relatively constant until changed by managerial decision. Within general limits they do not vary with business volume. Examples of fixed costs consist of rent, property taxes, and interest expense.

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