Question : ------------analysis is done by the firm to know its borrowing capacity.
Option 1: Securities Analysis
Option 2: Credit Analysis
Option 3: Debt Analysis
Option 4: None of the above
Correct Answer: Debt Analysis
Solution : Answer = Debt Analysis
Debt analysis: Assists in estimating the amount of debt that a borrower can take on without running the danger of default or financial hardship. It entails determining if a borrower is capable of taking on debt by analysing their income, expenses, and other pertinent variables in addition to their existing financial situation. Hence, the correct option is 3.
Question : ---------------- is a process by which the investor comes to know whether the firm is fulfilling his expectations with regard to payment of dividend, capital appreciation and security of money.
Question : --------------- Analysis is useful when a firm offers credit to a new customer or a dealer. The Manager of the firm would like to know whether to allow or extend credit to them or not. Such Analysis is also useful for a bank before granting loan.
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