Return on Investment Measures the Ratio of Total Profits to Total

question 77

True/False

Return on investment measures the ratio of total profits to total assets.

Identify factors that interfere with the effectiveness of the communication process.

Understand the importance of channel richness in communication and its capacity to carry information.

Know how feedback impacts the communication process and its role in reversing the communication flow.

Acknowledge the role of personal relationships and knowledge in building credibility.

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Definitions:

Financially Attractive

Refers to investments or projects that are appealing due to their potential for creating financial value or high returns.

Franchise

A business model where a business owner (franchisor) grants others (franchisees) the right to use its brand, product, or system in exchange for a fee.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency of the business.

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment or project, based on the sum of the present values of all cash flows associated with it.