All of the following statements regarding profit margin are true except:
A. Profit margin is calculated by dividing net income by net sales.
B. Profit margin is also called return on sales.
C. Profit margin is not a useful measure of a company's operating results.
D. Profit margin can be used to compare a firm's performance to its competitors.
E. Profit margin reflects the percent of profit in each dollar of revenue.
Answer: C
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Answer the following statement true (T) or false (F)
The American Psychological Association style uses the author-date system
Indicate whether the statement is true or false.
According to the text, an examination of the world's population and predictions for future populations suggests the following:
A. The nation projected to have the largest population in 2050 is China. B. The population of developing countries is nearly half of the world's total population. C. The 10 nations predicted to have the largest populations by the year 2050 are all developing countries. D. Because of low birth rates, developed nations will have a decreased demand for tourism and furniture. E. Because of low birth rates, developed nations will have an increased demand for financial services.
________ is not a useful financial ratio indicating how well a company's strategy is working.
A. The company's gross profit margin B. Quick (or acid test) ratio C. A long-term debt to equity D. Market share E. Return on stockholders' equity