Amazon's Tendency to Reinvest a Large Share of Its Profits

question 73

True/False

Amazon's tendency to reinvest a large share of its profits into new services and capabilities exemplifies a low level of resource flows.

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Definitions:

Gross Margin Ratio

A fiscal gauge that assesses the amount of profit remaining from sales once the expenses for producing the goods have been subtracted.

Net Sales

Total revenue from sales minus returns, allowances for damaged or missing goods, and any discounts allowed.

Cost of Goods Sold

Direct expenditures linked to the manufacture of a company's products for sale, covering both materials and labor.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been deducted from total revenue, indicating the company's financial health over a specified period.