Multiple choice

The overall performance of the business unit is measured by ______.

  1. return on investment

  2. inventory turnover ratio

  3. net profit to sales ratio

  4. proprietary ratio
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Return on Investment (ROI) is the primary ratio used to measure the overall performance and efficiency of a business. It evaluates how effectively the management has utilized the total capital employed to generate profits.

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