The ratio of profits to owner investment in a business is referred to as _____.

Name: The ratio of profits to owner investment in a business is referred to as _____.
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Question

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Return on equity is the ratio of profits earned by a business to the amount of owner investment in the business. It represents the percentage return on investment that the owners have earned. Return on assets, return on sales, and return on inventory are all different ratios used to measure the financial performance of a business.

The Ratio of Profits to Owner Investment in a Business