Discuss Three Ways That the Problems Associated with Using Return

question 6

Essay

Discuss three ways that the problems associated with using Return on Investment (ROI) can be minimised.

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Definitions:

Owner's Equity

Represents the residual interest in the assets of a business after deducting liabilities, essentially the net worth belonging to the owners.

Total Assets

Represent the sum of all assets a company owns, including cash, inventory, property, and equipment, among others, showing the total value of what the company controls.

Period Of Time

A duration in which activities, processes, or conditions exist or take place.

Accounts Receivable

Financial dues owed by patrons to an enterprise for products or services consumed but not yet compensated.