If a large company with a significant public profile was being sued because of a drug product failure that dramatically impacted a young child, and it was apparent that company employees had suppressed poor test results during the pre-approval trial stage, what is a likely reason the company might it suggest ADR rather than litigation?

Question 4 options:

	The fact that an arbitrator’s decision will be binding and likely be favourable to the corporation.
	A need to sustain the operation based on the amount of capital resources committed to its business activities.
	The ability to keep all details of the settlement private and confidential.
	A desire to avoid establishing a common law precedent.

(a) From the following information, compute Debt-Equity Ratio: Long Term Borrowings -2,00,000 Long Term Provisions - 1,00,000 Current Liabilities - 50,000 Non-current-Assets - 3,60,000 Current-Assets - 90,000 (b) The current ratio of X. Ltd is 2:1. State with reason which of the following transaction would (1) increase; (ii) decrease or (iii) not change the ratio. (1) Included in the trade payables was a bills payable of Rs 9,000 which was met on maturity. (2) Company issued 1,00,000 equity shares of Rs 10 each to the Vendors of machinery purchased.