A Firm Has the Following Financial Statement Data: Sales =

question 43

Multiple Choice

A firm has the following financial statement data: Sales = $2,000, COGS = $800, Operating Expenses = $600, and Taxes = $400. What is the firm's profit margin?

• A) 10%
• B) 20%
• C) 30%
• D) 40%
• E) 60%

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Definitions:

Corporate Powers

The legal rights and authorities that a corporation possesses, including entering contracts, owning property, and conducting business activities.

Transfer Restriction

Legal limitations or conditions placed on the transferability of an asset or security.

Share Certificate

A physical document certifying ownership of a particular number of shares in a company.

MBCA

Model Business Corporation Act, a template for state legislation that provides a statutory framework for the creation and operation of corporations within the United States.