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Q. Show the Limitations of ratio analysis ?
A ratio on its own is meaningless, accounting ratios must always be interpreted in relation to other information. Ratios based on historic cost accounts do not give a true picture of trends, because of the effects of inflation and different accounting policies. Investors' ratios particularly have a disadvantage, because investment means looking into the future and the past may not always be indicative of the future. Comparing the financial statements of similar businesses can also be misleading.
Q. Disadvantages of divisional structures? - As the complexity and diversity of products and markets within the group increase, central coordination by a head office or holding
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