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    Question

    What does the Basic Defense Interval ratio

    measure?
    A The company's revenue generation capabilities Correct Answer Incorrect Answer
    B The company's creditworthiness Correct Answer Incorrect Answer
    C The number of days for which the company can cover its cash expenses without additional financing Correct Answer Incorrect Answer
    D The company's market share in the industry Correct Answer Incorrect Answer

    Solution

    Formula: (Cash & Bank balances + Net Receivables + Marketable Securities) / Daily Operating expenses

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