Which of the Following Statements About Net Profit Margin Is

question 143

Multiple Choice

Which of the following statements about net profit margin is not correct?

• A)If a company's net profit margin increases from 12% to 18% this would be considered an improvement in profitability.
• B)A company with a net profit margin of 15% is using 85% of each dollar of revenue to cover costs and expenses.
• C)Net profit margin indicates how much net income is earned for each dollar of revenue.
• D)A company with a net profit margin of 8% may be evaluated differently depending upon which industry it is in.
• E)All of these statements are correct.

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Definitions:

Overt And Covert

Overt refers to actions or behaviors that are open and observable, while covert implies actions or behaviors that are concealed or hidden.

Individual And Organizational

Pertains to the characteristics and behaviors of a single person and how they interact within a group or corporate structure.

Resistance To Change

Opposition or reluctance to adapt to new procedures, technologies, or conditions within an organization.

Personal And Financial

Relates to aspects concerning an individual’s personal life and financial status, often emphasizing the interconnectedness of personal well-being and economic stability.