Investment Turnover (As Used in Determining the Return on Investment)

question 81

True/False

Investment turnover (as used in determining the return on investment) focuses on the rate of profit earned on each sales dollar.

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Definitions:

Withdraws

Money taken out of a business by its owner(s) for personal use.

Partnership

A business structure where two or more individuals share ownership, as well as the profits or losses of the business.

Capital Balances

The amount of money or value of assets that a company or an individual has invested in a business.

Net Income

The profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenues.