Business A-Level
interest cover
What interest cover means in Business A-Level, as defined for AQA.
Definition of interest cover
Check what you remember
Read the wording for your board, then hide it and explain interest cover in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The figure to watch when borrowing to expand raises gearing and therefore the interest burden that must be paid whatever sales do.
Topics that use interest cover
- Assessing a change in scale (AQA A-Level)
Related terms
- capacity utilisation
- Economies of scale
- external growth
- Franchising models
- gearing
- integration cost
- Methods of external growth
- organic growth
Using interest cover in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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