________ can be defined as the rate of return that the firm makes on its invested capital, which is calculated by dividing the net profits of the firm by total invested capital.
A) Profitability
B) Performance
C) Cash flow
D) Efficiency

Question

Quizplus · Accepted Answer

Profitability can be defined as the rate of return that the firm makes on its invested capital (ROIC), which is calculated by dividing the net profits of the firm by total invested capital. To maximize the value of a firm, managers must pursue strategies that increase the profitability of the enterprise and its rate of profit growth over time.

________ Can Be Defined as the Rate of Return That