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(a) Asset Management(b) Leverage(c) Liquidity(d) Profitability(e) Activity.
I agree with Mr Jetley....................................
Long term debt increases the company's financial leverage.
Debt to equity ratio is a financial ratio.
Profitability is the measure a company's ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of a company to generate profits from assets and resources at management's disposal. The ratios are Gross Profit Margin - Return On Equity (ROE) - Net Profit Margin
Liquidity ratios are the ratios that measure the ability of a company to meet its short term debt obligations. These ratios measure the ability of a company to pay short term debt, operations debt. They are Current Ratio - Acid-Test Ratio - Cash Ratio - Quick Ratio
Option B Leverage Sir ^_^ ....................
Agree with experts ++++++++++++++
(b)
Leverage or debt management ratios indicate the company’s ability to pay long-term debts.
(b) Leverage .........................................................................................
I think the answer is: (b) Leverage
-------------------- Aqree with Mr. Ahmed Abdullah
Thank you
answer B______ leverage _______
Option B is correct. It is also known as debt-equity ratio.