Accountancy, asked by arvind9126, 6 months ago

Explain why the owner should be satisfied his return on investment

Answers

Answered by abhinavgupta0339
1

Answer:

Return on investment (ROI) is a ratio between net profit (over a period) and cost of investment (resulting from an investment of some resources at a point in time). A high ROI means the investment's gains compare favourably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profits to capital invested...........................

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