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.

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Definitions:

Willingness to Pay

The maximum amount an individual is ready to spend on a good or service, reflecting the value the consumer places on it.

Supply-Side Market Failures

Situations where the production or supply side of the market does not efficiently allocate resources due to externalities or other market imperfections.

Costs

The expenses involved in manufacturing a product or providing a service.

Benefits

Advantages or positive outcomes that result from a particular action or policy.