The ratio of net profit to total owners' equity is called what?
A) return on inventory
B) return on earnings
C) return on equity
D) return on sales

Name: The ratio of net profit to total owners' equity is called what? A) return on inventory B) return on earnings C) return on equity D) return on sales
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Question

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The ratio of net profit to total owners' equity is called return on equity (ROE). It measures the rate of return that owners of a company receive on their investments in the business.

The Ratio of Net Profit to Total Owners' Equity Is