1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
erik [133]
2 years ago
10

Return on investment (ROI) for a firm is _______. a. the firm's total assets multiplied by net profits after taxes b. a measure

of the firm's effectiveness in generating profits with the available assets c. the margin of profit earned by the firm inclusive of the taxes payable by the firm d. lower than the previous year if the firm has performed better in the market
Business
1 answer:
Zarrin [17]2 years ago
3 0

Return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

<h3>What is the return on investment?</h3>
  • A ratio between net income and investment is known as return on investment or return on costs.
  • A high ROI indicates that the returns on the investment outweigh the costs.
  • ROI is used as a performance metric to assess an investment's effectiveness or to compare the effectiveness of multiple distinct investments.
<h3>What are profits?</h3>
  • The difference between an economic entity's revenue from its outputs and the opportunity costs of its inputs is what is known as a profit.
  • It is equivalent to total income less total expenses, which includes both direct and indirect expenses.
<h3>What are assets?</h3>
  • Any resource that a company or other economic organization owns or controls is considered an asset in financial accounting.
  • Anything that has the potential to provide positive economic value qualifies.
  • The ownership value that can be turned into cash is represented by assets.

Therefore, return on investment (ROI) for a firm (B) measures management's overall effectiveness in generating profits with the available assets.

Know more about revenue here:

brainly.com/question/25623677

#SPJ4

You might be interested in
Last year Rennie Industries had sales of $395,000, assets of $175,000 (which equals total invested capital), a profit margin of
maxonik [38]

Answer: 5.9%

Explanation:

Before:

Equity is calculated as:

= Total Assets / Equity Multiplier

= $ 175,000 / 1.2

= $ 145,833

Therefore, ROE will be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 145,833

= $ 20935 / $145,833

= 0.1436

= 14.36%

After:

New Total Assets will be:

= $ 175,000 - $ 51,000

= $ 124,000

Equity

= Total Assets / Equity Multiplier

= $ 124,000 / 1.2

= $ 103,333

ROE will then be:

= (Turnover × Profit Margin) / Equity

= ($ 395,000 × 5.3%) / $ 103,333

= $ 20935 / $ 103,333

= 0.2026

= 20.26%

Therefore, the change in ROE will be:

= 20.26% - 14.36%

= 5.9%

= 4.035%

7 0
3 years ago
If US workers can produce everything in less time than Mexican workers, it is not possible for the US to gain from trade with Me
Brums [2.3K]

Answer:

False

Explanation:

False because the theory of comparative advantage applies

5 0
3 years ago
Valuing my degree. I went to LSUS for 2 years and did not work. It cost me $35,000 per year (tuition and living). When I graduat
Llana [10]
I have no idea I’ve tried everything
4 0
3 years ago
IDPSs can help the organization protect its assets when its networks and systems are exposed to ____________________ vulnerabili
zhannawk [14.2K]

Answer:

The correct answer is Known vulnerabilities.

Explanation:

An intrusion prevention system (or by its acronym in English IPS) is a software that exercises access control in a computer network to protect computer systems from attacks and abuses. Intrusion prevention technology is considered by some to be an extension of intrusion detection systems (IDS), but in reality it is another type of access control, closer to firewall technologies.

5 0
3 years ago
Bob has a $50,000 stock portfolio with a beta of 1.2, an expected return of 10.8%, and a standard deviation of 25%. Becky also h
4vir4ik [10]

Answer:

Combined Beta =  1

Combined return = 10%

Explanation:

given data

stock portfolio = $50,000

beta = 1.2

expected return = 10.8%

beta = 0.8

expected return = 9.2%

standard deviation = 25%

to find out

combination

solution

we get here first Combined Beta that is express as

Combined Beta = 1.2 × 50% + 0.8 × 50%

Combined Beta =  1

and

Combined return will be here

Combined return = 10.8 × 50% + 9.2 × 50%

Combined return = 10%

5 0
3 years ago
Other questions:
  • A company sells digital music players and is introducing its latest player to the market. The company knows it can’t compete hea
    5·1 answer
  • The best way to approach charitable giving is to A donate to the first charity that requests it. B not spend a lot of time resea
    11·1 answer
  • Parker &amp; Stone, Inc., is looking at setting up a new manufacturing plant in South Park to produce garden tools. The company
    14·1 answer
  • Sales taxes tend to be __________ because low income individuals tend to spend more of their income.
    9·1 answer
  • As part of thinking about the _____, managers track the Consumer Price Index, manufacturing and retail inventory levels, and con
    7·1 answer
  • Which of the following is not one of the six key decisions in project management?
    5·1 answer
  • Which detail on a note card will best help you quickly recognize what the information on the note card is about?
    5·1 answer
  • Kristi is considering an investment that will pay $5,000 a year for 7 years, starting one year from today. How much should she p
    13·1 answer
  • The overall process of building and maintaining profitable customer relationships by delivering superior customer value and sati
    13·1 answer
  • a bank lender is concerned about the creditworthiness of one of its major borrowers. the bank is considering using a swap to red
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!