Return on equity is a better measure of performance than net income.

Name: Return on equity is a better measure of performance than net income.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Return on equity takes into account the amount of equity that shareholders have invested in the company, allowing for a more accurate reflection of how well the company is utilizing shareholder funds. Net income, on the other hand, may be influenced by factors such as tax laws or accounting policies and may not accurately represent the company's profitability.

Return on Equity Is a Better Measure of Performance Than