Which of the Following Formulas Calculates the Return on Investment

question 138

Multiple Choice

Which of the following formulas calculates the return on investment (ROI) ?

• A) Operating Income / Average Operating Assets
• B) After-tax Operating Income / Total Capital Employed
• C) Operating Income / Minimum Expected Return
• D) Residual Income / Sales
• E) Total Capital Employed / Operating Income

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Definitions:

Nonprofits

Organizations designed primarily to provide social good rather than to make a profit, relying on donations, grants, and volunteer work for funding.

Internal Revenue Service

The U.S. federal agency responsible for the collection of taxes and enforcement of tax laws.

Substantial Part Test

A tax law guideline used to determine whether a nonprofit organization's lobbying activities are extensive enough to affect its tax-exempt status, by evaluating if a significant portion of its activities are focused on influencing legislation.

Lobbying Disclosure Act

A United States federal law that requires registration and reporting of lobbying efforts directed towards the United States Congress, making the activities of lobbyists more transparent.