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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?
Assertion (A): The value of the concern is determined only by profitability.
Reason (R): Financial decisions which increase the profitability will decrease the value of the firm.
  • a)
    Both A and R are true and R is the correct explanation of A
  • b)
    Both A and R are true, but R is not the correct explanation of A
  • c)
    A is true, but R is false
  • d)
    A is false, but R is true
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Direction: In the questions given below are two statements labelled a...
I think there is some problem with the options because the right answer should BOTH (A) AND (R) ARE FALSE as we can see in assertion it says that the value of the concern in determined ONLY by profitability- which is FALSE since there are a number of ways too measure the value of the concern , and mostly ventures aren't profitable in the start.
And in REASON it is said that financial decisions which increase the profitability will decrease the value of the firm - that is totally wrong .
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Community Answer
Direction: In the questions given below are two statements labelled a...
Profits may be the most popular metric of measuring the success of a business venture but it is by no means the only (or the best) method for measuring success. Most start-ups are not profitable at the beginning of operation and many are not profitable for years.
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The value of the concern is determined only by profitability.Reason (R): Financial decisions which increase the profitability will decrease the value of the firm.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer?
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Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The value of the concern is determined only by profitability.Reason (R): Financial decisions which increase the profitability will decrease the value of the firm.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The value of the concern is determined only by profitability.Reason (R): Financial decisions which increase the profitability will decrease the value of the firm.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: In the questions given below are two statements labelled as Assertion (A) and Reason (R). In the context of the two statements, which one of the following is correct?Assertion (A): The value of the concern is determined only by profitability.Reason (R): Financial decisions which increase the profitability will decrease the value of the firm.a)Both A and R are true and R is the correct explanation of Ab)Both A and R are true, but R is not the correct explanation of Ac)A is true, but R is falsed)A is false, but R is trueCorrect answer is option 'B'. Can you explain this answer?.
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