Question: What is a ratio? How do ratios help alleviate the problem of size differences among firms? What does liquidity, long-term borrowing capacity, and profitability ratios

What is a ratio? How do ratios help alleviate the problem of size differences among firms? What does liquidity, long-term borrowing capacity, and profitability ratios measure? Name a group of users who might be interested in each category, and the reason why.

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