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Question 1
The lower the cost of sales compared to __________, the
higher the gross profit.
assets
revenue
gross
margin
operating
expenses
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Answer
Question 2

Operating margin is defined as:

operating income or loss divided by net sales revenues.

operating income or loss divided by total operating
expenses.

net sales revenues divided by net income or loss.

net assets divided by net liabilities.
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Answer
Question 3
What is another name for pro forma earnings?
Net
margin
Operating
income
Earnings
before income taxes, depreciation, and amortization (EBITDA)
Generally
accepted accounting principles (GAAP) earnings
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Answer
Question 4

Virtual merchants face potentially large costs for all of
the following EXCEPT:

building and maintaining a website.

building and maintaining physical stores.

building an order fulfillment infrastructure.

developing a brand name.
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Answer
Question 5

Current liabilities are debts of the firm that will be due
within:

three months.

six months.

one year.

two years.

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