1.

Assertion (A) : A high operating ratio indicates a favourable position.Reasoning (R) : A high operating ratio leaves a high margin to meet non operating expenses.

A. (A) and (R) both are correct and (R) correctly explains (A).
B. Both (A) and (R) are correct but (R) does not explain (A).
C. Both (A) and (R) are incorrect.
D. (A) is correct but (R) is incorrect.
Answer» D. (A) is correct but (R) is incorrect.


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