Business Awareness Questions

A market is said to be in equilibrium when market demand is equal to market Supply.

The primary goal of a business firm is to maximize profit.

Ratio analysis helps us to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency. The trend of these ratios over time can be used to check whether they are improving or deteriorating.

A partnership is a form of business where two or more people share ownership.

In economics we study that, if the price of a good increases the demand in its quantity decreases or the demand for its complimentary good increases.

For example, if the rice of a good increased by 5%, the demand in its quantity decreases by 10% approximately.

A major purpose of cost accounting is to measure, record and report product costs.