Asked by
Carlos Andres
on Nov 17, 2024
Verified
The formula for the return on investment (ROI) is
A) Invested Assets ÷ Operating Income
B) Sales ÷ Invested Assets
C) Operating Income ÷ Sales
D) Operating Income ÷ Invested Assets
Return on Investment
A measure of the profitability and efficiency of an investment, calculated as the net profit of the investment divided by its initial cost.
Invested Assets
Assets that are acquired for the purpose of generating income or appreciating in value, such as stocks, bonds, and real estate.
Operating Income
This is the income earned from normal business operations, excluding revenue from investments and other non-operational income.
- Achieve insight into the concept and determination of return on investment (ROI) and its contributing factors.
Verified Answer
RS
Learning Objectives
- Achieve insight into the concept and determination of return on investment (ROI) and its contributing factors.