Introduction:
The satisfactory ratio between internal and external is an important aspect in accounting ratios. It helps in evaluating the financial performance and position of a company. In this context, the NCERT solution for Chapter 5 on Accounting Ratios provides insights into the significance of this ratio and its implications for businesses.

The Concept of Internal and External Ratios:
Internal ratios refer to the ratios that are calculated using financial information from within the organization. These ratios are primarily used by management to assess the company's performance and make informed decisions. On the other hand, external ratios are calculated using financial information that is available to external stakeholders such as investors, creditors, and regulatory authorities.

Significance of the Ratio:
The satisfactory ratio between internal and external ratios is crucial as it indicates the level of alignment between a company's internal assessments and external perceptions. A high degree of consistency between these ratios suggests that the company's internal evaluations of its financial performance are in line with external expectations.

Implications for Businesses:
1. Accurate Decision-making: When the internal and external ratios are in sync, it helps management make more accurate decisions based on a comprehensive understanding of the company's financial position.

2. Investor Confidence: Consistency between internal and external ratios enhances investor confidence as it indicates that the company's financial statements are reliable and transparent.

3. Creditor Trust: Lenders and creditors rely on external ratios to assess the creditworthiness of a company. A satisfactory ratio between internal and external ratios ensures that the company's financial health is accurately reflected, which increases creditor trust.

4. Stakeholder Communication: When internal and external ratios align, it facilitates effective communication between the company and its stakeholders. This enables the company to provide a clear and accurate picture of its financial performance.

5. Identifying Discrepancies: In cases where there is a significant disparity between internal and external ratios, it highlights the need for further analysis and investigation. This can help identify potential discrepancies or areas of improvement within the company's financial reporting.

Conclusion:
The satisfactory ratio between internal and external ratios is important for businesses as it ensures consistency between internal assessments and external perceptions. This ratio has implications for decision-making, investor confidence, creditor trust, stakeholder communication, and the identification of discrepancies. By maintaining a satisfactory ratio between internal and external ratios, businesses can enhance their financial performance and position in the market.