Question: 1. explain operating gearing and its relationship to contribution. 2. explain what is meant by corporate social responsibility. Provide two examples. 3. explain (i) why

1. explain operating gearing and its relationship to contribution.

2. explain what is meant by corporate social responsibility. Provide two examples.

3. explain (i) why liquidity analysis of a company is important and (ii) why inventory and/or prepayments are excluded in the calculation of the acid test ratio.

4. explain, from your perspective, whether you think limited liability is a good thing.

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