The Profit Margin Ratio ________

question 138

Multiple Choice

The profit margin ratio ________.

• A) focuses on the liquidity of the business
• B) is computed by dividing net sales by net income
• C) shows how much gross profit a business earns on every $1.00 of sales
• D) is often compared to the industry average

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Definitions:

Low Performers

Employees who consistently fail to meet the established performance standards and expectations of their position.

High Performers

Individuals who consistently exceed the standard expectations and objectives set by their organization through their work performance.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Earnings-At-Risk Pay Plan

A compensation plan in which a portion of an employee's earnings is conditional, based on meeting certain performance criteria.