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The ratio of return on investment (ROI) measures the profitability of a business unit by comparing ________ to ________.

A) activity; sales


B) liquidity; liability


C) inventory cost; inventory turnover


D) net profit before taxes; total assets invested

User Turankonan
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Answer:

D) net profit before taxes; total assets invested

Step-by-step explanation:

The formula to compute the return on investment is shown below:

Return on investment = Operating Income รท Total assets invested

It shows a relationship between the pre taxes operating income and the total assets investment

It checks that investment which is invested yields high returns or not. If it generates high returns that it will gain to the company else the company will suffered the losses.

User Matt Ritchie
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