Which of the Following Statements Regarding the Net Profit Margin

question 59

Multiple Choice

Which of the following statements regarding the net profit margin ratio is false?

• A)The numerator is net income.
• B)The denominator is net sales or operating revenues.
• C)It measures how much of every sales dollar is gross profit.
• D)Financial analysts expect well-run businesses to maintain or improve their profit margin over time.

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Definitions:

Biopsychosocial Approach

An integrated perspective that incorporates biological, psychological, and social-cultural levels of analysis to understand health and illness.

Genetically Predisposed Traits

Characteristics or conditions that individuals are more likely to develop due to their genetic makeup.

Culturally Shaped Roles

Social roles and expectations defined by cultural beliefs, norms, and practices, influencing individual behavior and societal structures.

Social-Cultural Influences

Factors that affect individuals and societies based on cultural norms, values, beliefs, and social practices.