. Question (6) For which reasons is the gross margin a good indicator of credit risk? I. It reflects management's ability to grow sales while remaining profitable. 11. It reflects management's ability to increase company expenses while remaining profitable. III. 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. This is a single choice question. Selections are automatically selected as you use arrow to move. C II, III and IV only. CI and IV only. CI and II only CI, II and IV only. .Question (7) Which of the following statements about operating expense percentage is correct? This is a single choice question. Selections are automatically selected as you use arrow to move. It is a financial indicator over which management has little influence The operating expense percentage is a financial indicator that is unaffected by changes in the competitive environment. C It is a risk (cash) driver over which management typically has significant influence over the longer term. CAs management's control over operating expenses improves operating expense percentage and financial risk tend to increase .Question (8) Why is the level of and movement in the operating expense percentage an important indicator of financial risk? This is a single choice question. Selections are automatically selected as you use arrow to move. It provides important insight into management integrity It is an indicator of production efficiency. C It reveals the success of the business's Inventory procurement strategies It is a measure of expense management, exclusive of production and financing costs. . Question (9) What is the most likely cause of an increase in a business's gross margin? This is a single choice question. Selections are automatically selected as you use arrow to move. C Strong competition has affected the business's ability to generate a profit. The business's cost structure lacks sufficient flexibility to withstand a decline in demand Prices for the business's products have declined relative to costs. The business is experiencing strong market demand. . Question (6) For which reasons is the gross margin a good indicator of credit risk? I. It reflects management's ability to grow sales while remaining profitable. 11. It reflects management's ability to increase company expenses while remaining profitable. III. 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. This is a single choice question. Selections are automatically selected as you use arrow to move. C II, III and IV only. CI and IV only. CI and II only CI, II and IV only. .Question (7) Which of the following statements about operating expense percentage is correct? This is a single choice question. Selections are automatically selected as you use arrow to move. It is a financial indicator over which management has little influence The operating expense percentage is a financial indicator that is unaffected by changes in the competitive environment. C It is a risk (cash) driver over which management typically has significant influence over the longer term. CAs management's control over operating expenses improves operating expense percentage and financial risk tend to increase .Question (8) Why is the level of and movement in the operating expense percentage an important indicator of financial risk? This is a single choice question. Selections are automatically selected as you use arrow to move. It provides important insight into management integrity It is an indicator of production efficiency. C It reveals the success of the business's Inventory procurement strategies It is a measure of expense management, exclusive of production and financing costs. . Question (9) What is the most likely cause of an increase in a business's gross margin? This is a single choice question. Selections are automatically selected as you use arrow to move. C Strong competition has affected the business's ability to generate a profit. The business's cost structure lacks sufficient flexibility to withstand a decline in demand Prices for the business's products have declined relative to costs. The business is experiencing strong market demand