The gross profit margin gives investors the best indication of how effectively a business is earning a profit from its normal business operations.

Name: The gross profit margin gives investors the best indication of how effectively a business is earning a profit from its normal business operations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The gross profit margin only measures how efficiently a company produces its goods, not overall profitability, as it doesn't account for operating expenses, taxes, or interest.

The Gross Profit Margin Gives Investors the Best Indication of How