All other things equal,which of the following events would generally cause an increase in a company's return on investment (ROI)?
A) An increase in average operating assets.
B) A decrease in sales.
C) A decrease in operating expenses.
D) An increase in operating expenses.

Question

Quizplus · Accepted Answer

A decrease in operating expenses would generally cause an increase in a company's return on investment because it would lead to a higher net income, which is one of the components of ROI. Increased operating expenses would generally reduce net income and lower ROI. Increases in average operating assets or sales would not necessarily impact ROI unless they are accompanied by changes in net income or operating expenses.

All Other Things Equal,which of the Following Events Would Generally