The following ratios primarily measure risk:

(A) Liquidity

(B) Activity

(C) Debts

(D) Profitability

Choose the correct answer from the options given below:

(A), (C) and (D) only

The correct answer is option 2- (A), (C) and (D) only.

Except activity ratios, all other ratio measure risk as Activity ratios provide insights into a company's operational efficiency and its ability to generate sales or turnover. 

• Liquidity ratios gauge a company's ability to meet its short-term financial obligations promptly. Liquidity ratios are calculated to measure the short-term solvency of the business, i.e. the firm’s ability to meet its current obligations.
• Profitability ratios delve into a company's capacity to generate earnings based on the utilization of its resources.
• Solvency ratios focus on assessing a business's capability to fulfill its long-term debt obligations rather than short-term ones. Solvency ratios are calculated to determine the ability of the business to service its debt in the long run.