Final answer:
The statement is false. ROE is a financial ratio that measures a company's profitability.
Step-by-step explanation:
The statement is false. The concept being described in the question is actually the Return on Equity (ROE), which is a financial ratio used to measure the profitability of a company by comparing its net income to the average shareholders' equity. ROE shows how much profit a company generates for every dollar invested by its owners.
For example, if a company has a net income of $100,000 and an average shareholders' equity of $1,000,000, the ROE would be 10%. This means that for every dollar invested by the owners, the company generates 10 cents in profit.
The Energy Returned on Energy Invested (EROEI) mentioned in the provided information is a measure of how profitable an energy source is in terms of energy, expressed as a ratio.