Return on Investment (ROI)is a Term Most Often Used to Express

question 69

Multiple Choice

Return on investment (ROI) is a term most often used to express income earned on assets invested in a business unit.A company's return on investment would increase if sales

• A)increased by the same dollar amount as expenses and total assets increased.
• B)remained the same and expenses were reduced by the same dollar amount that total assets increased.
• C)decreased by the same dollar amount that expenses increased.
• D)and expenses increased by the same percentage that total assets increased.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, representing the proportion of sales that turns into profit.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, calculated by dividing the total dividends by the net income for the same period.

Total Assets

The sum of all resources owned by an entity that are recognized as having economic value.