Question

A positive result that stems from the use of return on investment (ROI) is that it encourages managers to focus on:

a) the relationship among sales, expenses, and investment.
b) cost efficiency.
c) operating asset efficiency.
d) the efficient use of resources in generating income.
e) All of these choices are correct.

Answer 1

Option E

Step-by-step explanation:

In simple words, return on investment refers to the amount of income or profit that an organisation generates with its given level of resources. Such resources include all the assets such as machinery, equipment and human resources of the company.

This measure gives a sign if the different sections of the company are working efficiently or not. It is a quantitative measure therefore, it also depicts if the amount generated is enough or not. Thus, we can conclude that all the options are correct.