2. What is operating margin? a) It is equal to net sales - operating expenses b) It is equal to (net sales - cost of sales) / net sales c) It is equal to (gross profit on sales - operating expense ) / net sales d) It is equal to (net sales - operating expense ) / net sales 3. What is Gross Margin ? a) Net Sales - Cost of Sales b) (Net Sales - Cost of Sales ) / net Sales c) Net Sales - Cost of Sales - Operating Expenses d) Net Sales - Cost of Sales - Operating Expenses)/ Net Sales 4. How can the firm increase its operating margin? a) By increasing the Gross Profit on Sales and decreasing the Operating Expenses b) By decreasing Cost of Goods Sold, Operating Expenses and Financial Expenses c) By increasing Net Sales and Nonoperating Revenues and Decreasing Financial Expenses d)By Increasing the gross margin and total assets 5. Which of the statements is NOT TRUE about the Net Working Capital? a) It is equal to the portion of the current assets financed by long term sources. b) When it is , current assets are finaced totally by current debt c) It is equal to Current Assets - Current Liabilities d) The liquidity of the current assets increase parallel to the decrease in the net working capital 6. What are operating expenses? a) Cost of goods sold, General Administrative expenses, Marketing Expenses b) General Administrative expenses, Marketing Expensesand Research and Development Expenses c) Production Expenses, Investment Expenses, and Financing Expenses d) Product Expenses and Period Expenses