What Do the Following Classes of Ratios Measure? (A) Liquidity

question 78

Essay

What do the following classes of ratios measure? (a) Liquidity ratios. (b) Profitability ratios.
(c) Solvency ratios.

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Definitions:

Limited Liability Partnerships

Limited Liability Partnerships (LLPs) are partnerships in which some or all partners have limited liabilities, meaning they are not personally responsible for the partnership's debts.

Contractual Obligation

An agreement that legally binds two or more parties to specific actions or non-actions.

Commission Of A Tort

The act of committing a wrong that is recognized by law as grounds for a lawsuit, typically involving injury to individuals or entities.

Partners' Liability

The legal responsibility shared by partners in a partnership for the debts and obligations of the business.