Profit margin

Profit margin – this legal term is used in the area of Commercial Law, where it refers to an accountancy examination of the financial condition of particular company. It examines the incomes and costs of the company for concrete period of time. Usually the profit margin is performed by independent oditors prior to sale of this company. Or during insolvency claims, where the court has to establish whether this company has intentionally reduced their assets to lead to bankruptcy. Synonyms are “net (profit) margin” or “net profit ratio”.

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