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Which type of ratio is often used to assess the ability of a business organisation to meet its short-term financial obligations? ActivitySolvencyLiquidityProfitability

Question

Which type of ratio is often used to assess the ability of a business organisation to meet its short-term financial obligations? ActivitySolvencyLiquidityProfitability

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Solution

The type of ratio often used to assess the ability of a business organisation to meet its short-term financial obligations is the Liquidity ratio.

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