Which of the following constitutes an ROI?
A) Amount earned from sales before taxes
B) Amount realized from cutting production costs
C) Amount earned as a result of a financial investment
D) Amount,or ratio,that represents rate of investment
E) Amount earned as gross income

Question

Quizplus · Accepted Answer

An ROI (Return on Investment) specifically refers to the amount earned as a result of a financial investment, so option C is the best choice.

Option A refers to sales revenue, which is not necessarily the same as ROI since it does not take into account the cost of producing the goods sold.

Option B refers to cost savings, which may improve profitability but is not the same as ROI.

Option D refers to the ROI ratio itself, not the actual amount earned.

Option E refers to gross income, which may include various sources of revenue and does not specifically refer to ROI.

Which of the Following Constitutes an ROI