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Steps involved in ratio analysis
The following are the four steps involved in the ratio analysis:
1) selection of relevant data from the financial statement depending upon the objective of the analysis
2) calculation of appropriate ratios from the above data
3) Comparison of the calculation ratio with the ratios of the same firm in the past or the ratios developed from projected financial statement or the ratios of some other firms or the comparison with ratio of the industry to which the firm belongs.
4) Interpretation of the ratios.
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Characteristics of product life cycle The major characteristics of life-cycle concept are as follows: 1) The products have finite live and pass by the cycle of development i
x+2y+3z=6 2x+4y+z=7 3x+2y+9z=14
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Question 1: Assuming that you are appointed consultant on economic matters for a company and you are asked to analyse the market structures in various sectors of the economy.
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