Return on Investment (ROI) for a Firm

question 51

Multiple Choice

Return on investment (ROI) for a firm:

• A)is the margin of profit earned by the firm inclusive of the taxes payable by the firm.
• B)is its total assets multiplied by net profits after taxes.
• C)measures management's overall effectiveness in generating profits with the available assets.
• D)will be lower than the previous year if the firm performs better in the market.

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Definitions:

CPP Payable

Refers to the amount owed by companies or individuals for contributions to the Canada Pension Plan, a key component of Canada's public retirement system.

CPP Expense

Costs associated with the Canada Pension Plan contributions by an employer, representing a payroll expense.

Non-current Note

a long-term financial obligation or loan that is not due for repayment within the next year or operating cycle of the business.

Instalment Payments

Payments made towards the cost of a purchase over a period, allowing the buyer to pay off the total amount owed in smaller, periodic amounts.