Question : ______________shows the relationship of profit (profit before interest and tax) with Capital Employed.
Option 1: Return on Equity
Option 2: Return on investment
Option 3: Net profit ratio
Option 4: Capital employed turnover ratio
Correct Answer: Return on investment
Solution : Answer = Return on investment
Return on investment (ROI) shows the relationship between profit (profit before interest and tax) and capital employed. It measures the efficiency and profitability of a company's capital investments by indicating the return generated per unit of investment in the business. Hence, the correct option is 2.
Question : What ratios are affected by "Return on Investment"?
Question : Which of the following statements is true?
Question : With the help of the following information, calculate the Return on Investment: Net Profit after Interest and Tax Rs. 6,00,000; 10% Debentures Rs. 10,00,000; Tax @ 40%; Capital Employed Rs. 80,00,000.
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