Which of the Following Equations Is Correct

question 46

Multiple Choice

Which of the following equations is correct?

• A)Profit margin = net income/sales
• B)Profit margin = assets + liabilities
• C)Profit margin = revenue - expenses
• D)Profit margin = net income/total assets
• E)Profit margin = net income/stockholder's equity

---

Definitions:

Economic Growth

An increase in a country's output of goods and services, usually measured by GDP growth.

Human Capital

The skills, knowledge, and experience possessed by an individual or population, viewed in terms of their value or cost to an organization or country.

Foreign Investment

Capital investment made by individuals or entities of one country in the assets or enterprises of another country.

State Industries

Industries owned, operated, and managed by the government of a country.