"Return on investment" means:
A) sales divided by investment.
B) investment divided by net sales.
C) net profit before taxes divided by the assets used to make the profit.
D) net profit after taxes divided by the investment used to make the profit.
E) None of the above.

Question

Quizplus · Accepted Answer

Return on investment (ROI) is a measure of profitability that calculates the difference between the net profit earned and the cost of investment, and then expresses it as a percentage of the investment. Choice D matches this definition, as it divides net profit after taxes by the investment used to make the profit.

"Return on Investment" Means