1. For a company, if interest coverage ratio is less than one, what would be its implications in the business? In what type of classification will one place such a company? What specific measures will...

1. For a company, if interest coverage ratio is less than one, what would be its implications in the business? In what type of classification will one place such a company? What specific measures will one suggest to improve the financial health of such a company?

2. In case a break-even point for the business is reached only after five years of sales, what are the implications of such a business? Would one like to enter into such a business? Justify your answer by considering an example.