The Profit Margin Ratio Is Used to Measure Long-Term Solvency

question 67

True/False

The profit margin ratio is used to measure long-term solvency.

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Definitions:

Sub-prime Lending

The practice of making loans to borrowers who are considered to be at higher risk of default, typically due to having a poor credit history.

Payday Lenders

Financial institutions that provide high-interest, short-term loans to individuals typically due on the borrower's next payday.

Military Financial Network

Refers to the interconnected systems, services, and resources that manage and support the financial aspects of a nation's military operations, including pay, budgeting, and procurement.

Corporate Pretax Profits

Earnings generated by a corporation before taxes are deducted, often used as a measure of a company's financial performance.