The Gross Margin Ratio

question 158

Multiple Choice

The gross margin ratio:

• A) Is also called the net profit ratio.
• B) Measures a merchandising firm's ability to earn a profit from the sale of inventory.
• C) Is also called the profit margin.
• D) Is a measure of liquidity.
• E) Should be greater than 1.

Grasp the concepts of appraisal biases and how they impact performance ratings.

Recognize the importance of multiple source feedback in appraisals, especially the 360-degree feedback method.

Understand the purpose of management by objectives in performance appraisals.

Understand the various biases that can affect performance appraisals.

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Definitions:

Liability

The state of being legally responsible for something, typically a debt or obligation.

Negotiable Instrument

A legal document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, with the payer named on the document.

Signed

Having affixed one's signature to a document, thereby indicating agreement, consent, or authorization.

Every Party

Refers to all the individuals or entities involved in an agreement, contract, or legal action.