Return on investment (ROI) for a firm:
a.
will be lower than the previous year if the firm performs better in the market.
b.
measures management's overall effectiveness in generating profits with the available assets.
c.
is its total assets multiplied by the net profits after taxes.
d.
is the margin of profit earned by the firm inclusive of the taxes payable by the firm.
Answer: b.
measures management's overall effectiveness in generating profits with the available assets.