Here are 5 advantages of buying a car: Paying less over the long term. Monthly lease payments are generally less expensive than monthly car loan payments. However, with each loan payment, you can build up equity for the future when you decide to sell it or trade it in.
A ratio which estimates the risk associated with investing in a business firm is called: solvency ratio.
Solvency ratio can be defined as a key metric that is typically used to measure the ability of a business firm to meet its long-term debt obligations.
Basically, a solvency ratio measures the financial position of a business firm and the extent to which its assets cover long-term debt obligations (commitments), especially for future payments and the liabilities.
In conclusion, a ratio which estimates the risk associated with investing in a business firm is called solvency ratio.
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