Which Ratio Measures the Portion of Net Sales That Is

question 105

Multiple Choice

Which ratio measures the portion of net sales that is gross profit?

• A) Gross margin ratio.
• B) Net sales ratio.
• C) Gross profit ratio.
• D) Gross margin ratio and gross profit ratio
• E) All of these answers are correct

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Definitions:

Foreseeable Risks

Potential dangers or hazards that a reasonable person should be able to predict could occur under certain conditions.

Proximate Cause

Proximate cause is a legal concept referring to the primary cause of damage or injury, setting the limit of legal liability.

Foreseeability

A concept in tort law where certain harms should have been reasonably predicted or anticipated as a result of one's actions or omissions.

But For Causation

A legal principle that determines causation by asking whether an injury would have occurred 'but for' the defendant's actions.