BUS 100 Study Guide - Lemonade, Current Liability, Thrice
Document Summary
Ratio is a quantitative comparison of the relative size of two or more quantities with the same units of measurement. Businesses use ratios in a variety of situations and it is a powerful tool for making financial decisions. It is particularly important for analyzing business profitability and its ability to meet debt payment. As well, knowledge of ratio helps us make all kinds of comparisons in business. A common ratio in business is to compare the value of current assets to that of current liabilities. Another common ratio is to compare earnings after taxes to equity. Sometimes businesses compare the cost of raw materials to cost of labour. 5. 2 properties of of confectionary products such as bread, candies and muffins, there. Ratio are standard proportion of ingredients that each product should. The terms of a ratio are the numbers in the ratio. No term of a ratio can contain. be zero.
