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Question : If debt equity ratio exceeds______, it indicates risky financial position.

Option 1: 1:1

Option 2: 2:1

Option 3: 1:2

Option 4: 3:1


Team Careers360 4th Jan, 2024
Answer (1)
Team Careers360 18th Jan, 2024

Correct Answer: 2:1


Solution : If the debt-equity ratio exceeds 2:1, it indicates a risky financial position.

Hence the correct answer is option 2.

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