QUESTION 2 ma od indicator of credit ability to grow sales while remaining profitable ce a bility to increase company expenses while remaining pro the r that is necessary about management's ability to compet of the status and direction of a business financial health al and loml b. 1. ll and IV only. c I and IV only. d. II, III and IV only QUESTION 2 1. For which reasons is the gross margin a good indicator of credit risk? 1. It reflects management's ability to grow sales while remaining profitable. II. It reflects management's ability to increase company expenses while remaining profitable. TIL. It tells the lender all that is necessary about management's ability to compete IV. It is a valuable gauge of the status and direction of a business's financial health a. I and II only b. I, II and IV only. c. I and IV only. d. II, III and IV only