Q.
1
Assertion (A): A low debt-equity ratio is generally recommended for newly started business
Reasoning (R): During the initial years of the business, debt servicing will prove to be less burdensome.
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A
Both (A) and (R) are correct but (R) is not the correct explanation of (A)
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B
(A) is not correct but (R) is correct
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C
Both (A) and (R) are correct but (R) is the correct explanation of (A)
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D
(A) is correct but (R) is not correct