Ratio analysis which examines venture performance

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Reference no: EM131618742

1. Which of the following is NOT used in ratio analysis which examines a venture’s performance?

a) qualitative analysis

b) trend analysis

c) cross sectional analysis

d) industry comparable analysis

2. Is there a limit to the debt ratio's value? (Select the best choice below.)

A. Theoretically, the debt ratio cannot exceed 70%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)

B. Theoretically, the debt ratio cannot exceed 90%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)

C. Theoretically, the debt ratio cannot exceed 80%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)

D. Theoretically, the debt ratio cannot exceed 100%. In practice, few creditors would extend loans to companies with exceedingly high debt ratios (> 70%)

Reference no: EM131618742

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