Paper 2 - Making Financial Decisions Flashcards

1
Q

AVERAGE RATE OF RETURN

A

Average year,y profit as a percentage of the sum invested.

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2
Q

GROSS PROFIT MARGIN

A

Gross profit as a percentage of sales revenue.

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3
Q

NET PROFIT MARGIN

A

Net profit as a percentage of sales revenue

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4
Q

SUM INVESTED

A

The cash put at risk when investing in new equipment

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