19
QuizMultiple Choice

Net Worth Profit — Quiz

Question 19 • Financial Math

How is "return on investment (ROI)" best defined?

Answer
A
the total value of liquid assets
B
the efficiency of an investment in generating earnings relative to its cost
C
the amount of revenue generated in a year
D
the total assets minus total liabilities

Explanation

Return on investment measures how effectively an investment generates earnings compared with the amount invested. Choice C describes this relationship between earnings and cost. The other choices refer to balance-sheet values or annual revenue, not investment efficiency.

AI-written and checked against the verified answer.

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