Explanation

Fasting results in hunger, just as racing results in fatigue.

Both show a cause-effect relationship.

Explanation

Current assets include cash or assets expected to be converted into cash within one year.

Examples include cash, inventory, and accounts receivable.

Explanation

Net profit margin = Net profit ÷ Total revenue × 100.

It shows how efficiently a company converts revenue into actual profit.

Explanation

The P/E ratio compares a company’s stock price to its earnings per share (EPS).

A higher P/E often reflects greater investor expectations for future growth and profitability.

Explanation

Debt-to-equity ratio compares a company's total liabilities to its shareholder equity.

It shows how much debt the company uses to finance its assets relative to equity—key for assessing long-term financial stability.

Explanation

ROE = Net Income ÷ Shareholders’ Equity.

It shows how efficiently a company uses shareholders' funds to generate profit.

Explanation

An oligopoly is a market with few large firms dominating the industry.

These firms often influence prices and market decisions due to limited competition.

A Monopoly exists when there is only one seller in the market.

The product offered has no close substitutes, giving the seller full pricing power.

Explanation

The Quick Ratio (also called acid-test ratio) excludes inventory as it is less liquid.

It focuses on assets that can quickly cover short-term liabilities.

Explanation

The Current Ratio = Current Assets ÷ Current Liabilities.

It evaluates a company’s liquidity and its ability to pay short-term debts.

Explanation

The Income Statement reports a company’s revenues, expenses, and net profit or loss over a specific period.

It reflects the company's operational performance during that time.