Given below are two statements on labelled as Assertion (A) and the other labelled as Reason (R) Read the statements and choose the correct answer using the code below. Assertion (A) : A low debt equity ratio is recommended for a newly started business. Reason (R) During the intitial years of the business, debt servicing will prove to be burdensome. Code 1. (A) is not corrrct but (R) is correct. 2. Both (A) and (R) are correct and (R) is the correct explanation of (A). 3. (A) is correct but (R) is not correct. 4. Both (A) and (R) are the correct but (R) is the correct explanation of (A).

1 answer

Ravi Staff January 14, 2019

Both (A) and (R) are correct


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