Greg is doing some research on a potential supplier and is concerned that the supplier's...

Vendor: CIPS
Product: L4M4
Update on: Nov 3, 2025
Questions: 282

CIPS L4M4 Question Answer

Greg is doing some research on a potential supplier and is concerned that the supplier's funding is based on long-term debts and loans. Working with this supplier therefore might bring additional risks to Greg's business. What should Greg do about his concerns?

use the Return on Investment Ratio

do an Acid Test

work out the supplier's EBITDA

work out the supplier's gearing ratio