Which of the Following Statements About Net Profit Margin Is

question 41

Multiple Choice

Which of the following statements about net profit margin is not correct?

• A) If a company's net profit margin increases from 15% to 20% this would be considered an improvement in profitability.
• B) A company with a net profit margin of 10% is using 90% of each dollar of revenue to cover costs and expenses.
• C) Net profit margin indicates how much net income is earned for every dollar of revenue.
• D) A company with a net profit margin of 10% may be evaluated differently depending upon which industry it is in.

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Definitions:

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimulus has ceased.

Slides

A single page or image, often part of a presentation, used to convey information visually, typically displayed with a projector or on a computer screen.

Recency Effect

This refers to the tendency to remember the most recently presented information best.

Implicit Memory

The system for long-term storage of unconscious memories that cannot be verbally described.