New Glo-Bus Simulation Game Quiz 1 Answers
As of 2017, a new version of Glo-Bus has been released. It is called “New Glo-Bus Cameras and Drones”. However, it is very similar to the prior version of Glo-Bus which is currently being run concurrently.
To help have a review of what this game is about. I have attached a question from New Glo-Bus Quiz 1.
The Global Community Bank, under terms of its long-term banking agreement with the company ,has agreed to lend the company additional monies should you elect to use debt to help finance growth and other financial needs; the interest rate the GCB will charge on such loans is determined is tied to the payback period (1-year ,5-years,10-years) and to
- How many consecutive years the company has been profitable and its interest coverage ratio
- The company`s net profit margin
- The company`s debt-assets ratio and gross profit margin
- The company`s balance sheet strength
- The company`s credit rating and the going rates of interest in world financial markets
Let’s review these answers.
1 The consecutive years is important, and so is the interest coverage ratio. So therefore, this answer is actually rather right, however it doesn’t quite nail it.
2 The company’s net profit margin for the year does have impact, however isn’t as all encompassing to judge the interest rate.
3) The debt to assets ratio is pertinent, but the gross profit less so. And still it’s not all encompassing.
4) This statement is really quite vague.
5) The company’s credit rating is the all encompassing feature that we are looking for along with the going rates of the worlds financial markets.
Answer 5 is correct!
For more information on New Glo-Bus Quiz 1 or how to succeed in New Glo-Bus, feel free to contact me.
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