Sustained Growth Is Defined as Growth in Both Revenues and Profits

question 51

True/False

Sustained growth is defined as growth in both revenues and profits over an extended period of time.

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Definitions:

Net Operating Income

The total profit of a company after operating expenses are subtracted from gross profit.

ROI

Return on Investment, a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Contribution Margin Ratio

The percentage of sales revenue remaining after variable costs are subtracted, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that remain constant regardless of the level of production or business activity.