A company that is seeking to increase ROI should attempt to decrease:
A)sales.
B)turnover.
C)margin.
D)average operating assets.

Question

Quizplus · Accepted Answer

Return on Investment (ROI) is calculated by dividing net income by average operating assets. Therefore, if a company wants to increase its ROI, it should aim to decrease its average operating assets. This can be achieved by reducing excess inventory, selling off unused equipment, or streamlining operations to make them more efficient. Lowering sales, turnover, or margin could potentially have a negative impact on the company's overall profitability and should be avoided.

A Company That Is Seeking to Increase ROI Should Attempt