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:

Vestibule

An anatomical space or cavity at the entrance of some structures, especially the central part of the bony labyrinth in the inner ear, involved in balance.

Cochlea

A spiral-shaped, fluid-filled inner ear structure essential for hearing.

Cochlear Nerve

A nerve responsible for transmitting auditory information from the cochlea of the inner ear to the brain.

Sensorineural Deafness

A type of hearing loss that occurs due to damage to the inner ear or to the pathway from the inner ear to the brain.