please answer these MCQ

"The ratio which is considered to be the primary measure of overall profitability as it assesses how effectively the business has used its funds is:" Select one: O a. operating profit margin O b. return on ordinary shareholders' funds O c. return on capital employed d. gross profit marginDavid looks at the ratio calculations you have prepared for MicroSystems and the ratios obtained on his industry competitor JB and he asks you some questions. Pick the best response from the answers provided. "These ratios are based on both the Income Statement and the Balance Sheet. Should I also have a Cash Flow Statement for my business?" Select one: O a. Yes, because the Cash Flow Statement provides information about cash receipts and cash payments, which is also important to know for a business. O b. Yes, because the Cash Flow Statement gives more useful information than the Income Statement and Balance Sheet. c. No, because the Income Statement and Balance Sheet are both based on the accrual accounting concept, which is better. O d. No, because Cash Flow Statements are only important for companies, not for sole traders. "Why do I need profitability ratios when my Income Statement already contains profit calculations?" Select one: O a. Because accountants enjoy an excuse to perform additional calculations. O b. A ratio helps put a profit figure in context, by relating it to another number, such as sales. This also allows industry comparison with businesses of different sizes. O c. By calculating profitability ratios, the liquidity of the business can also be determined, which is important. O d. A ratio helps put a profit figure in context - unless a ratio is calculated first, profit figures cannot be compared to past periods."What is the difference between the gross profit ratio and the operating profit ratio?" Select one: O a. The gross profit ratio shows the percentage of profit made from sales, taking just the cost of the products themselves into account. The operating profit ratio takes all of the operating expenses and interest expense into account as well. O b. The gross profit ratio shows the percentage of profit made from sales, taking just the cost of the products themselves into account. The operating profit ratio takes just the operating expenses into account, but not the cost of sales. O c. The gross profit ratio shows the percentage of profit made from sales, taking just the cost of the products themselves into account. The operating profit ratio takes all of the operating expenses into account as well. O d. The gross profit ratio shows the percentage of profit made from sales, taking all the operating expense of the business into account. The operating profit ratio takes the interest expense into account as well. "How could I improve my gross profit ratio further and what would the consequences be?" Select one: O a. You could increase sales prices, but this may reduce your overall sales volume. Or, you could increase your purchase price through bulk purchasing, but this may leading to lower inventory holding costs. b. You could decrease sales prices, which may increase your overall sales volume. Or, you could reduce your purchase price through bulk purchasing, but this may leading to higher inventory holding costs. O c. You could decrease sales prices, which may increase your overall sales volume. Or, you could increase your purchase price through bulk purchasing, but this may leading to lower inventory holding costs. O d. You could increase sales prices, but this may reduce your overall sales volume. Or, you could reduce your purchase price through bulk purchasing, but this may leading to higher inventory holding costs