The Ratio of Net Profit to Net Sales Is the Net

question 16

Multiple Choice

The ratio of net profit to net sales is the net profit margin. What is another term for it?

• A) return on revenue
• B) return on earnings
• C) return on equity
• D) return on sales

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Definitions:

1970s

The decade extending from January 1, 1970, to December 31, 1979, noted for significant political, social, and economic events worldwide.

Open-market Operations

Central bank activities involving the buying and selling of government securities in the open market to control the money supply and interest rates.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to fund federal government spending.

Federal Open Market Committee

The branch of the Federal Reserve System responsible for setting monetary policy, including the manipulation of interest rates and the money supply.