Walmart,the World's Largest Retailer by Revenue,announced That It Will Get

question 50

Multiple Choice

Walmart,the world's largest retailer by revenue,announced that it will get back to its founder's roots by initiating more price cuts.Critics claimed that the giant was getting away from its original focus because it posted relatively high gross profit margins.CEO Mike Duke assuaged critics by saying Walmart's $400 billion in sales will become even larger because the price cuts will attract more customers and it will lower its costs of goods sold.
-Refer to Walmart.Walmart's gross margin is the:

• A) total sales from all of its stores worldwide
• B) amount of money it makes as a percentage of sales after the cost of goods sold is subtracted
• C) amount of money it makes as a percentage of sales before taxes
• D) amount of money it makes as a percentage of sales after all costs are subtracted
• E) net profit it earns after all expenses and taxes are subtracted

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Definitions:

Retained Earnings

Profits that a company has earned to date, less any dividends or other distributions paid to shareholders.

Earnings Per Share

A financial ratio calculated by dividing a company's profit available to its common shareholders by the number of outstanding shares.

Outstanding Common Stock

Shares of a company that have been issued and are currently held by investors, excluding shares held by the company itself.

Income Earned

Revenue recognized from the sale of goods or services, or the performance of operational activities.