The ratio of return on investment (ROI)measures the profitability of a business unit by comparing ________ to ________.
A) activity; sales
B) liquidity; liability
C) inventory cost; inventory turnover
D) net profit before taxes; total assets invested

Question

Quizplus · Accepted Answer

The ratio of return on investment (ROI) compares the net profit before taxes, which is a measure of profitability, to the total assets invested, which represents the amount of investment made by the business unit. Therefore, the correct option is D - net profit before taxes; total assets invested.

The Ratio of Return on Investment (ROI)measures the Profitability of a Business