Explanation:

- Proprietary Ratio: It indicates the proportion of shareholders' funds to total assets. A ratio of 0.7 implies that 70% of the total assets are financed by shareholders' funds.

- Given: Proprietary ratio = 0.7, Shareholders' Funds = Rs 1,75,000.

- Formula: Proprietary ratio = Shareholders' Funds / Total Assets

- Calculation:

- 0.7 = 1,75,000 / Total Assets

- Total Assets = 1,75,000 / 0.7

- Total Assets = Rs 2,50,000

- Options:

- Option 1: Rs 1,75,000

- Option 2: Rs 2,50,000

- Option 3: Rs 1,22,500

- Option 4: None of these

Option 2 is correct. With a proprietary ratio of 0.7, the total assets must be Rs 2,50,000.

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