A Small Increase in the Gross Profit Percentage Could Indicate

question 40

Multiple Choice

A small increase in the gross profit percentage could indicate:

• A) a decrease in operating expenses.
• B) a significant rise in net income.
• C) lower inventory turnover.
• D) a decrease in net income.

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Definitions:

Corporate Interests

Refers to the goals, objectives, or priorities of a corporation, often aimed at maximizing profitability and shareholder value.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

De Jure Corporation

A corporation that has been legally incorporated and recognized by the state, operating fully under the law.

Single Purpose

Designed or intended for one specific use or objective.