Final answer:
Option B is the correct answer. The least likely limitation of ratio analysis is the belief that most companies around the world subscribe to the same set of accounting standards, which is actually a significant variability affecting the comparability of financial ratios.
Step-by-step explanation:
The least likely limitation of ratio analysis among the options provided is B. Most companies around the world subscribe to the same set of accounting standards. This is because accounting standards can vary significantly from one country to another, and even companies within the same country may adopt different standards, for instance, GAAP (Generally Accepted Accounting Principles) in the United States versus IFRS (International Financial Reporting Standards) elsewhere. This diversity in standards can indeed affect the comparability of financial ratios across companies. However, the question asks for the least likely limitation, and this option is a recognized issue in financial analysis.
On the other hand, A. Companies may have several divisions that operate in different industries, and C. There are no specified ranges within which particular ratios for companies must lie, are more direct limitations of ratio analysis. The diversity of operations across industries can lead to misleading ratio comparisons, and the absence of specified ranges makes it difficult to judge what constitutes a good or bad ratio.