Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average. (B) There has been an improvement in the expense ratio from 2003 to 2004. (C) The expense ratio in 2004 compares favourably with the industry average. (D) Each of the profitability ratios indicates performance below industry averages.

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Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average - HSC - SSCE Business Studies - Question 4 - 2004 - Paper 1

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Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average. (B) There has been an improvement in the expense ... show full transcript

Worked Solution & Example Answer:Which of the following statements is correct? (A) Net profit ratios compare favourably with the industry average - HSC - SSCE Business Studies - Question 4 - 2004 - Paper 1

Step 1

Identify the correct statement

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Answer

Among the options provided, we need to evaluate the correctness of each statement regarding the financial performance relative to industry averages.

After analyzing, we recognize that statement (D) is the correct answer: Each of the profitability ratios indicates performance below industry averages.

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