UGC NET COMMERCE December 2018 Q86

0. Given below are two statements, one labelled as Assertion (A) and the other labelled as Reason (R). Read the statements and choose the correct answer using the code given below.
Assertion (A): A low debt-equity ratio is generally recommended for a newly started business.
Reason (R): During the initial years of the business, debt servicing will prove to be less burdensome.

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