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    Question

    Capital employed

    is:
    A Cash + bank balance Correct Answer Incorrect Answer
    B Shareholder equity + long term funds Correct Answer Incorrect Answer
    C Assets + cash Correct Answer Incorrect Answer
    D Bank balance Correct Answer Incorrect Answer
    E Current assets + current liabilities Correct Answer Incorrect Answer

    Solution

    Capital employed refers to the long term sources of funds in the company i.e. equity funds and long term liabilities.

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