A Firm's Profit Margin, or Return on Sales, Is Computed

question 9

Multiple Choice

A firm's profit margin, or return on sales, is computed by dividing ________.

• A) net income by net sales
• B) gross profit by net sales
• C) net income by gross profit
• D) net income by cost of sales
• E) operating income by gross profit

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Definitions:

Social Contract

A theoretical framework suggesting that individuals consent, either explicitly or tacitly, to surrender some freedoms to an authority in exchange for security and societal benefits.

Gilligan's Theory

A psychological theory proposed by Carol Gilligan that emphasizes the differences in moral reasoning between men and women, focusing primarily on care and relationships as opposed to justice.

Personal Relationships

Interpersonal affiliations or connections between individuals, shaped by emotional, social, and sometimes professional factors.

Moral Development

The process by which individuals acquire and evolve their moral reasoning and ethical behavior over time.