What Is the Purpose of Determining Return on Investment

question 41

Multiple Choice

What is the purpose of determining return on investment?

• A)to assess a company's controllable margin
• B)to determine which costs are controllable
• C)to assess performance of an investment centre
• D)to determine profitability of a profit centre

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Definitions:

Price Floor

The minimum legal price set by the government that a product can be sold for.

Minimum Wages

The lowest legally permissible amount that workers can be paid for their labor, set by government laws.

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing apartments or houses, aiming to make housing more affordable.

Social Loss

The total reduction in welfare or well-being to society, typically resulting from inefficient market conditions like monopolies or externalities.