THE ROLE OF RATIO ANALYSIS IN BUSINESS DECISIONS
INTRODUCTION BACKGROUND INFORMATION The two primary objectives of every business are profitability and solvency. Profitability is the ability of a business to make a profit, while solvency is the ability of a business to pay debts as they come due. (Hermanson et al, 1992: 824). However, the achievement of these objectives requires efficient management of resources of the business through planning, budgeting, forecasting, control, and decision – making. Also, the ...
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