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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


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 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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