Return on Investment (ROI)is Measured by Dividing _____

question 51

Multiple Choice

Return on investment (ROI) is measured by dividing _____.

• A) profit by assets
• B) revenues by profit
• C) expenses by revenues
• D) profit by expenses

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Definitions:

Opportunity Cost

Passing up on potential profits from a range of choices when one selection is made.

Decision-making Process

A series of steps taken by an individual or organization to determine the best action to achieve a particular goal.

Efficient Markets

Financial markets where prices fully reflect all available information.

Marginalism

The process of analyzing the additional or incremental costs or benefits arising from a choice or decision.