A Gross Margin Ratio of 38 Percent Means That for Every

question 18

True/False

A gross margin ratio of 38 percent means that for every $1 of sales, a firm produces 62 cents of gross margin.

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Definitions:

Revolving Credit

Revolving credit is a flexible funding option where credit is automatically renewed as debts are paid off, up to a certain limit.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Line of Credit

A Line of Credit is a flexible loan from a bank or financial institution allowing the borrower to draw funds up to a specified limit at any time.

Economic Reasons

Factors or situations related to the structure and functioning of the economy that influence decisions and behaviors.