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If a Firm Cannot Earn Profits in the Short Run,it

question 35

True/False

If a firm cannot earn profits in the short run,it will shut down.


Definitions:

Net Profit Margin Ratio

A financial ratio indicating the percentage of net income generated from total revenue.

Balance Sheet

A statement of finance that shows a corporation's assets, liabilities, and owner's equity at a specific moment.

Balance Sheet

An accounting record that outlines a business's assets, obligations, and equity of shareholders at a designated time.

Total Asset Turnover Ratio

An indicator assessing the capability of a firm to turn its assets into sales revenue efficiently.

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