If Income from Operations for a Division Is $6,000, Invested

question 140

True/False

If income from operations for a division is $6,000, invested assets are $25,000, and sales are $30,000, the profit margin is 20%.

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Definitions:

Sales Puffery

Exaggerated or boastful statements about a product or service that are not meant to be taken literally and are thus not legally binding promises or warranties.

Justifiably Relied

A principle where a party's action or decision is based on another's representations or promises, perceived as reasonable.

Representation

The act of standing in for or acting on behalf of others, or the presentation of information in a particular manner.

Detrimental Reliance

A legal term describing a situation where an individual suffers harm by relying on a promise or representation made by another.