How Is a Company's Return on Investment Calculated

question 89

Multiple Choice

How is a company's return on investment calculated?

• A) Dividing the margin by the turnover.
• B) Multiplying the margin by the turnover.
• C) Dividing the turnover by the average operating assets.
• D) Multiplying the turnover by the average operating assets.

Comprehend the significance of JIT in reducing in-transit inventory and the role of supplier location.

Recognize the concerns of suppliers when entering JIT partnerships.

Know the influence of JIT systems on production layout and inventory management.

Understand the key characteristics and differences between major psychological perspectives (behavioural, humanistic, cognitive, psychodynamic, sociocultural).

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Definitions:

Effective Annual Rate

The real interest rate on an investment or loan, considering the effects of compounding over a one-year period.

Interest-Only

A loan payment option where the borrower is required to pay only the interest portion for a specific period.

Balloon Loan

A type of loan that typically requires small periodic payments and a large lump sum payment at the end of the loan term.

Amortized Loan

A loan with scheduled periodic payments that include both principal and interest.