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:

Dominance Structuring

The organization of individuals within a group that establishes a hierarchy of power or influence.

Unwise Decision

A choice or judgment that is made without proper consideration of the consequences, often leading to negative outcomes.

Decision-Critical Attributes

Key factors or characteristics that are crucial to making an informed and effective decision in a given context.

Evaluating Options

The process of examining and comparing different choices to make the best decision.