Which of the Following Statements About a High Net Profit

question 2

Multiple Choice

Which of the following statements about a high net profit margin is FALSE?

• A) It demonstrates how effective your business is at converting sales into profit.
• B) It may mean that you are capitalizing on some competitive advantage that can provide your business with extra capacity and flexibility during the hard times.
• C) It may mean that you are keeping your operating expenses under control to earn an acceptable profit.
• D) It may mean that your business might need to take on debt to pay its expenses.

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Definitions:

Technical Skill

The ability and knowledge necessary to accomplish specific tasks, often relating to computational and physical technology.

Cognitive Ability

The capacity of an individual to perform various mental activities related to learning, problem-solving, decision-making, and similar intellectual functions.

Selling Process

A structured approach to selling that involves identifying prospects, presenting products, overcoming objections, and closing sales, aimed at converting leads into customers.

Tangible Attributes

Physical features or characteristics of a product that can be sensed directly, such as size, design, or color.