Final answer:
Profit margins in business refer to the percentage of revenue that remains as profit after deducting expenses. Different types include gross profit margin, operating profit margin, and net profit margin.
Step-by-step explanation:
In business, profit margins refer to the percentage of revenue that remains as profit after deducting expenses. It is a measure of a company's profitability and can be calculated by dividing the net profit by the revenue. Different types of profit margins include gross profit margin, operating profit margin, and net profit margin.
The gross profit margin is the percentage of revenue that remains after deducting the cost of goods sold. The operating profit margin is the percentage of revenue that remains after deducting operating expenses. The net profit margin is the percentage of revenue that remains as profit after deducting all expenses, including taxes and interest.