Other things equal, a firm can increase return on investment (ROI) by:
A) decreasing investment.
B) reducing expenses.
C) increasing profit margins.
D) increasing net sales.
E) Any of these will increase ROI.

Question

Quizplus · Accepted Answer

A firm can increase its ROI in three ways: increase profit margin (with lower costs or a higher price), increase sales, and decrease investment (careful asset management can reduce expenses).

Other Things Equal, a Firm Can Increase Return on Investment