A Decrease in Operating Expenses Would Have Which of the Following

question 100

Multiple Choice

A decrease in operating expenses would have which of the following effects on a company's profit margin?

• A)Net profit margin would decrease.
• B)Net profit margin would increase.
• C)Net profit margin would remain unchanged.
• D)There is not enough information given to determine the effect.

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Definitions:

Common Law

A body of unwritten laws based on legal precedents established by the courts, influencing the decision-making in similar cases.

Courts of Chancery

Courts that have jurisdiction over matters of equity, including trusts, land use, and the administration of estates, historically separate from courts of law.

Common Law

A legal system based on court precedents and customs, rather than codified written laws.

Civil Law

The system of law concerned with private relations between members of a community rather than criminal, military, or religious affairs.