Question

A ratio of profit to capital used, or a rate of return from capital, is referred to as ____.

A. the debt-equity ratio

B. the leverage ratio

C. return on investment

D. net working capital

E. transfer price

Answer 1

Return on investment (ROI) is a ratio that measures the profitability or efficiency of an investment by comparing the profit generated to the amount of capital invested.

Step-by-step explanation:

A ratio of profit to capital used, or a rate of return from capital, is referred to as return on investment (ROI). ROI measures the profitability or efficiency of an investment by comparing the profit generated to the amount of capital invested. It is commonly used in business and finance to assess the performance of investments.