Question

Which of the following is considered a profitability measure?

1) Return on Investment (ROI)
2) Earnings per Share (EPS)
3) Gross Profit Margin
4) All of the above

Answer 1

The answer is 4: All of the above. Return on Investment (ROI), Earnings per Share (EPS), and Gross Profit Margin are all considered profitability measures in a business context.

Step-by-step explanation:

The answer is 4) All of the above.

All three options - Return on Investment (ROI), Earnings per Share (EPS), and Gross Profit Margin - are considered profitability measures in a business context.

Return on Investment (ROI) is a financial metric that measures the profitability of an investment by dividing the net profit (profits minus costs) by the initial investment. It provides insights into how efficiently a company generates profits from its investments.

Earnings per Share (EPS) is another profitability measure that calculates the amount of profit allocated to each outstanding share of a company's common stock. It indicates the company's profitability on a per-share basis.

Gross Profit Margin is a measure of profitability that evaluates the percentage of revenue that remains after accounting for production costs. It represents the company's ability to generate profits from its core business operations.