Return on Investment (ROI)is a Term Often Used to Express

question 4

Multiple Choice

Return on investment (ROI) is a term often used to express income earned on capital invested in a business unit.A division's ROI would increase if:

• A)Sales increased by the same dollar amount as expenses and total assets increased.
• B)Sales remained the same and expenses were reduced by the same dollar amount that total assets increased.
• C)Sales decreased by the same dollar amount that expenses increased.
• D)Sales and expenses increased by the same percentage that total assets increased.
• E)Net profit margin on sales increased by the same percentage that total assets increased.

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Definitions:

Piece Rates

A compensation method where employees are paid based on the amount of work they complete, such as the number of items produced or tasks finished.

Commissions

A form of payment to an employee based on the sales they generate, usually a percentage of the sales amount.

External Control

Mechanisms or practices imposed from outside an organization to ensure it meets legal, ethical, or standard compliance, such as regulatory measures.

Sales Representative

An individual who promotes and sells products or services for a company, often working on commission.