Quiz: Using Profitability Ratios to Assess Performance

WJEC Eduqas GCE A LEVEL in BUSINESS specification

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Building on what you've learned about profitability ratios, let's test your understanding of how they are used to assess business performance!

Multiple ChoiceInteractive

What does the gross profit margin measure?

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Which of the following factors can improve gross profit margin? (Select all that apply)

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Net profit margin represents the {{blank0}} of revenue left after all {{blank1}} have been deducted.

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Multiple ChoiceInteractive

Why might a business with a high gross profit margin still struggle financially?

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Multi-SelectInteractive

Which profitability ratios would be most relevant for investors assessing a business? (Select all that apply)

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A business with a {{blank0}} gross profit margin but a {{blank1}} net profit margin may have high operating costs.

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Match the items on the left with their correct pairs on the right

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