Why Is Return on Investment (ROI)the Most Commonly Used Financial

question 20

Multiple Choice

Why is return on investment (ROI) the most commonly used financial performance measure?

• A)It predicts whether profits will cover fixed costs.
• B)It helps monitors the level of debt an organization is carrying in order to maintain a good credit rating.
• C)It shows whether organizations can pay creditors without selling assets.
• D)It measures how efficiently managers are turning inventory over.
• E)It allows managers of one organization to compare performance with that of other organizations in its industry.

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Definitions:

Vertices

The plural of vertex, meaning the corners or points where lines meet in a geometric shape.

Co-vertices

The endpoints of the minor axis of an ellipse, considered less significant than the primary vertices.

Vertex

The highest or lowest point of a parabola, representing the maximum or minimum value of a quadratic function.

Vertex

The highest or lowest point of a parabola where it changes direction, or a corner point of a geometric shape.