Which Minimum Return on Investment Would a Professional Investor Expect

question 8

Multiple Choice

Which minimum return on investment would a professional investor expect with a superior business opportunity?

• A) 10 percent
• B) 20 percent
• C) 25 percent
• D) 30 percent
• E) 50 percent

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Definitions:

Short-Run Cost

Expenses that a firm faces in the short term, typically involving costs that vary with the level of output.

Product Promotion

The activities undertaken by a business to make its products or services known to potential customers and persuade them to buy.

Product Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.