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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define Operating Profit Ratio.
💡 Hint: Think about what profit relates to company operations.
Question 2
Easy
What is included in Operating Profit?
💡 Hint: It's before interest and tax!
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What does the Operating Profit Ratio measure?
- Total profits
- Operational efficiency
- Net income
💡 Hint: Focus on the core functions of a business.
Question 2
True or False: A higher Operating Profit Ratio is always better.
- True
- False
💡 Hint: Consider what the ratio signifies.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A new coffee shop has net sales of ₹300,000 and operating profit of ₹60,000. Calculate the Operating Profit Ratio and discuss what this implies for the business.
💡 Hint: Break it down using the formula discussed.
Question 2
If the OPR for two companies in the fast-food industry are 22% and 18%, what might this indicate about their operational efficiency?
💡 Hint: Consider how profitability ratios reflect company performance.
Challenge and get performance evaluation