_____ would not increase return on investment.
A)A decrease in inventories
B)An increase in sales revenue
C)A decrease in expenses
D)All of these answers are correct

Question

Quizplus · Accepted Answer

None of these choices alone can determine an increase in return on investment. It depends on the level of investment and the industry in which the company operates. For example, reducing inventory levels in a retail business may improve cash flow but it may also lead to stock shortages and loss of sales if product demand is not met. Increasing sales revenue may be positive but if the cost of acquiring the new customers is high, it may not result in an increase in profitability. Decreasing expenses is also beneficial to a company but if it is at the expense of cutting back on quality or necessary investments, it may not result in a higher return on investment.

_____ Would Not Increase Return on Investment