Which of the following is measured by profit margin?
Correct answer
D. Operating efficiency
Explanation
Profit margin ratio is calculated to determine how efficiently the business is generating cash from operations (below taxes and interest).
MCQs
Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.
Correct answer
D. Operating efficiency
Explanation
Profit margin ratio is calculated to determine how efficiently the business is generating cash from operations (below taxes and interest).
Correct answer
D. Inflation
Explanation
Inflation is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
A. shorter payback period
Explanation
shorter payback period is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. avoid taxes
Explanation
avoid taxes is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. $5000 and $10000
Explanation
$5000 and $10000 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Positive economic value added
Explanation
Positive economic value added is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. higher net present value
Explanation
higher net present value is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. 20.24
Explanation
20.24 is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. more risky
Explanation
more risky is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Electronic communication network
Explanation
Electronic communication network is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.