What is the difference between a relational database and a network database?
What will be an ideal response?
Answer: A relational database stores data in multiple database tables. These tables are related to each other using common fields in two different tables. These common fields are referred to as the primary key and the foreign key. Data is retrieved by using the relationship between tables.
A network database stores data in records that are not grouped into database tables. Records are categorized as parent or child records. In this type of database, a parent record may have many child records and a child record may have many parent records. Data is retrieved by using record addresses.
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A firm which uses the aggressive financing strategy plans to purchase a major fixed asset financed with a loan. The most likely consequence of this action is ________
A) a decrease in the current ratio B) an increase in net working capital C) a decrease in the risk of insolvency D) an increase in long-term debt