What Does the Profit Margin Measure

question 30

Multiple Choice

What does the profit margin measure?

• A)The percentage of each sales dollar that the entity earns in profit.
• B)The amount of profit available to meet operating expenses.
• C)The amount of profit being generated by the company's assets.
• D)The average time it takes the company to turn inventory into profit.

---

Definitions:

Conventional Values

Traditional beliefs or norms that are widely accepted within a society or among members of a particular group.

Recognized Authority

An individual or institution regarded as being knowledgeable or having official power in a particular field.

External Locus

A psychological perspective where an individual believes that control over their life events and outcomes lies outside themselves.

Control Fate

The concept of having influence or control over the outcomes of one's actions or the direction of events in one's life or environment.