Question : Which of the following is the proprietary ratio?
Option 1: Shareholder’s Funds/Fixed Assets
Option 2: Shareholder’s Funds/Total Assets
Option 3: Long-term Debts/Shareholder’s Funds
Option 4: Total Assets/Shareholder’s Funds
Answer (1)
24th Jan, 2024
Correct Answer: Shareholder’s Funds/Total Assets
Solution :
A sort of solvency ratio called a proprietary ratio is helpful for figuring out how much shareholders or business owners contribute to the overall assets of the company.
Proprietary Ratio: Shareholder’s Funds/Total Assets
Hence option b is the correct answer.
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