Net Profit Margin Is What Type of Financial Ratio

question 102

Multiple Choice

Net profit margin is what type of financial ratio?

• A) liquidity ratio
• B) profitability ratio
• C) activity ratio
• D) leverage ratio
• E) revenue ratio

---

Definitions:

Promoters

Individuals or entities that take the initiative in founding and organizing a business or corporation, often responsible for its early management and securing of initial capital.

Incorporation Process

The legal procedure through which a business entity is formed and recognized as a corporation under the law, providing it with certain legal rights and protections.

Capital

Financial assets or resources owned by an individual or organization, used for investment or production.

Corporate Bylaws

Detailed rules adopted by a corporation governing its operations, including the rights and responsibilities of shareholders and directors.