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How are financial ratios used in decision making? Multiple Choice They arent useful because decision making is too complex T
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Ratio Analysis is a useful tool to evaluate the liquidity, profitability, Operating Efficiency and Financial Strength. And these ratios can be used for Inter firm & Intra Firm Comparison and also Used for the Budgeting. So the Financial ratios are used in Decision making so that they can help identify the reasons for success and Failue in business, but decision making requires information beyond the ratios.
Option (C ) is Correct
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