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Proprietary ratio/ equity ratio
Meaning: the ratio measures a relationship among proprietor's funds and the total assets.
Objective: the objective of computing this ratio is to find out how the proprietors have financed the assets.
Computation: this ratio is computed by dividing the proprietor's funds by total assets. The ratio can be calculated.
This ratio can also be shown in percentage which indicates the percentage of owner's capital to total capital of the firm.
State the factors of CVP The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales se
Objectives of ratio analysis 1) Measuring the profitability: we can measure the profitability of the business by calculation gross profit net profit expenses ratio and other.
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How to write introduction on strategy plan
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