All of the Following Statements Regarding Profit Margin Are True

question 157

Multiple Choice

All of the following statements regarding profit margin are true except:

• A)Profit margin reflects the percent of profit in each dollar of revenue.
• B)Profit margin is also called return on sales.
• C)Profit margin can be used to compare a firm's performance to its competitors.
• D)Profit margin is calculated by dividing net income by net sales.
• E)Profit margin is not a useful measure of a company's operating results.

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Definitions:

False Classification

Incorrectly categorizing an item, instance, or phenomenon, leading to potential misunderstanding or error.

White National Pride

A controversial ideology focusing on national identity and pride within the context of White heritage, which is often associated with racial exclusivity.

Valid Argument

An argument whose conclusion logically follows from its premises, where if the premises are true, the conclusion must also be true.

Affirming the Antecedent

A logical fallacy where it's assumed if the first condition is true, the second must also be true, given the first implies the second.