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The Drivers of Profitability

This video depicts the main drivers of firm profitability.

Click the $$Black right point button to watch the video. Then, answer the questions that follow.

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Operating profit margin

Multiple Choice

is higher for firms with a high cost of goods sold.

measures operating expenses as a percentage of revenue.

measures the percentage of revenue left over after operating expenses to cover other expenses.

measures the amount of revenue generated for every dollar of invested capital.

is higher for firms with a low tax rate.