Definition
Gross margin, also known as gross profit margin, is a financial metric that measures the profitability of a company's core business activities by comparing its revenue to the cost of goods sold (COGS). Gross margin represents the percentage of revenue that exceeds the direct costs of producing goods or delivering services. A higher gross margin indicates greater profitability and efficiency in generating revenue, while a lower gross margin may indicate higher production costs or pricing pressures. Gross margin is a key indicator of a company's operational performance and competitiveness.
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Private Limited Company (Ltd)
A Private Limited Company (Ltd) is a type of company where the ownership is divided into shares held by a small number of shareholders. The liability of shareholders is limited to the amount unpaid on their shares, and the company’s shares cannot be traded publicly on the stock exchange.
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is a business structure where partners have limited personal liability for the debts and obligations of the partnership. Each partner’s liability is limited to their investment in the LLP, and they are protected from the actions of other partners.