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Why is capital employed important for businesses - SS2 Accounting Interpretation of Accounts Using Simple Accounting Ratios Equity: Capital Employed Question

Why is capital employed important for businesses?

A

It measures the efficiency and profitability of a business.

B

It helps businesses avoid paying taxes.

C

It determines the size of a business's workforce.

D

It determines the price of a business's products.

correct option: a
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