Get premium membership and access questions with answers, video lessons as well as revision papers.
• It is difficult to compare firms of different sizes, levels of technology and diversification using ratios.
• Ratios are computed from past statements thus giving historical information which may be irrelevant in future decision making.
• Ratios keeps on changing.
• Ratios concentrates on the quantitative and industrial analysis of a firm and ignore important qualitative features of a firm.
• Ratios do not consider the effects of inflation on the performance of a firm.
• Different firms in the same industry use different policies and bases. It is difficult to use ratios to compare these firms.
skilled writter answered the question on May 3, 2018 at 17:11
- Explain factors that makes it difficult for Kenyans to purchase houses through building societies(Solved)
Explain factors that makes it difficult for Kenyans to purchase houses through building societies.
Date posted: May 2, 2018. Answers (1)
- QUESTION: Describe the theories that have embraced entrepreneurship culture. (10 Marks)
(Solved)
COURSE CODE: BBM 208
COURSE TITLE: ENTREPRENEURSHIP THEORY AND CONCEPTS.
Second year second semester.
Date posted: May 1, 2018. Answers (1)
- Give four advantages of buying goods on hire purchase(Solved)
Give four advantages of buying goods on hire purchase.
Date posted: May 1, 2018. Answers (1)
- Differentiate giving examples between human wants and needs(Solved)
Differentiate giving examples between human wants and needs.
Date posted: May 1, 2018. Answers (1)
- Explain four methods for exchange control applied by the government.(Solved)
Explain four methods for exchange control applied by the government.
Date posted: May 1, 2018. Answers (1)
- Outline the objectives of exchange control(Solved)
Outline the objectives of exchange control
Date posted: May 1, 2018. Answers (1)
- Explain five factors leading to fluctuations of foreign exchange.(Solved)
Explain five factors leading to fluctuations of foreign exchange.
Date posted: May 1, 2018. Answers (1)
- Distinguish between nominal interest rate and real interest rate.(Solved)
Distinguish between nominal interest rate and real interest rate.
Date posted: May 1, 2018. Answers (1)
- Explain the various measures to control inflation.(Solved)
Explain the various measures to control inflation.
Date posted: May 1, 2018. Answers (1)
- Explain 7 effects of inflation.(Solved)
Explain 7 effects of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the various causes of inflation.(Solved)
Describe the various causes of inflation.
Date posted: May 1, 2018. Answers (1)
- Describe the classifications of inflation(Solved)
Describe the classifications of inflation
Date posted: May 1, 2018. Answers (1)
- State six feature of inflation(Solved)
State six feature of inflation
Date posted: May 1, 2018. Answers (1)
- Distinguish between risk control and risk financing(Solved)
Distinguish between risk control and risk financing
Date posted: May 1, 2018. Answers (1)
- Discuss four methods of handling risks(Solved)
Discuss four methods of handling risks
Date posted: May 1, 2018. Answers (1)
- Outline the steps involved in the risk management process.(Solved)
Outline the steps involved in the risk management process.
Date posted: May 1, 2018. Answers (1)
- State the meaning and explain objectives of risk management(Solved)
State the meaning and explain objectives of risk management.
Date posted: May 1, 2018. Answers (1)
- Explain the six parts of an insurance contract(Solved)
Explain the six parts of an insurance contract
Date posted: May 1, 2018. Answers (1)
-
State the exceptions to the principle of indemnity in insurance(Solved)
State the exceptions to the principle of indemnity in insurance
Date posted: May 1, 2018. Answers (1)
- Explain four requirements of a valid insurance contract.(Solved)
Explain four requirements of a valid insurance contract.
Date posted: May 1, 2018. Answers (1)