A Firm's Net Profit Margin When Ignoring the Effects of Financing

question 41

Multiple Choice

A firm's net profit margin when ignoring the effects of financing is 20% with an EBIT of $1.5 million and sales of $5 million.How much did the firm pay in taxes?

• A)$600,000
• B)$500,000
• C)$400,000
• D)$300,000

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Definitions:

Brand Loyalty

The tendency of consumers to continuously buy the same brand's products over time, reflecting a strong preference and trust in the brand.

Brand Identity

encompasses the visible elements of a brand, such as color, design, and logo, that identify and distinguish the brand in consumers' minds.

Brand Extension

A marketing strategy in which a company leverages its established brand name for new products or product categories, aiming to increase its market share.