What measures the overall effectiveness of management in generating profits with its available assets?
A) return on investment
B) efficiency maximization
C) target-on-sales
D) retained earnings

Question

Quizplus · Accepted Answer

Return on Investment (ROI) measures how much profit a company generates from its investments in assets. It is a good measure of the overall effectiveness of management in generating profits with its available assets. Efficiency maximization and target-on-sales do not specifically measure profitability, while retained earnings are a "trail" of past profits and do not necessarily indicate the effectiveness of current management.

What Measures the Overall Effectiveness of Management in Generating Profits