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प्रश्न
How can the financial strength of a business enterprise be judged?
लघु उत्तर
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उत्तर
The financial strength of a business enterprise can be judged based on two main criteria, i.e., its earning capacity, which refers to profitability, and its ability to repay loans and pay dividends. This involves assessing profitability ratios and solvency ratios to determine if the business can generate sufficient profits and meet its financial obligations on time.
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