All of the Following Statements Regarding Profit Margin Are True

question 157

Multiple Choice

All of the following statements regarding profit margin are true except:

• A)Profit margin reflects the percent of profit in each dollar of revenue.
• B)Profit margin is also called return on sales.
• C)Profit margin can be used to compare a firm's performance to its competitors.
• D)Profit margin is calculated by dividing net income by net sales.
• E)Profit margin is not a useful measure of a company's operating results.

---

Definitions:

Epistemologically

Pertaining to epistemology, the branch of philosophy concerned with the nature, scope, and limitations of knowledge.

Karl Marx

A 19th-century philosopher, economist, and revolutionary socialist who developed the theory of Marxism, focusing on the class struggle and the need for the working class to overthrow capitalist societies.

Emile Durkheim

A foundational French sociologist who contributed to the establishment of sociology as a discipline with his theories on social cohesion and collective conscience.

Max Weber

was a German sociologist, economist, and political scientist known for his ideas on social theory and the structure of society.