Respuesta :

The statements that correctly define profit margin are:

Profit margin is the ratio of a business's net income to its net sales.

Profit margin is a useful measure of a business's operating results.

Profit margin is also called return on sales.

Profit margin is the amount of revenue received on a sale

What is profit margin?

Profit margin is a type of profitability ratio. Profitability ratio measure the efficiency of a firm in generating profits from its assets.

Profit margin is used to determine which business activity is profitable. It determines this by dividing income by revenue. The higher the profit margin is, the more profitable a firm is.

Here is the complete question:

Which of the following statements correctly define(s) a profit margin? (Check all that apply.)

Profit margin is the ratio of a business's net income to its net sales.

Profit margin is the ratio of a business's net income to its accounts receivables.

Profit margin is a useful measure of a business's operating results.

Profit margin is also called return on sales.

Profit margin is the amount of revenue received on a sale

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