Net Income Divided by Sales Is the Correct Formula for Calculating

question 81

Multiple Choice

Net income divided by sales is the correct formula for calculating:

• A) profit margin on sale
• B) a current ratio
• C) a liquidity ratio
• D) return on total assets s
• E) a corporate evaluation.

Comprehend the role of dependency in power dynamics.

Understand the influence of power and politics on organizational behavior.

Recognize the significance of the iron law of responsibility in balancing power.

Distinguish between legitimate, coercive, reward, expert, and personal forms of power.

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Definitions:

Indemnity

A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnitor or other specified causes.

Reciprocity

Refers to a mutual exchange of privileges or benefits between two parties, where each party offers something in return for what is received, often seen in trade agreements.

Vertical Integration

A strategy where a company expands its operations by taking control of one or more stages in the production or distribution of a product.

Inventory Costs

Expenses associated with holding and managing goods in stock, including warehousing and insurance costs.