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QWhich term refers to a measure of a company's profitability that represents the percentage of each dollar of revenue that is converted into profit?

ID: #10899 Definitions 110 views
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  • A Gross profit margin ✔ ✖
  • B Net profit margin ✔ ✖
  • C Return on investment (ROI) ✔ ✖
  • D Earnings per share (EPS) ✔ ✖
Correct Answer: Option B

Explanation

Net profit margin is a measure of a company's profitability that represents the percentage of each dollar of revenue that is converted into profit after accounting for all expenses. It is calculated by dividing net income by total revenue and is used to assess a company's ability to generate profit from its operations.

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