12 Questions
What is the primary purpose of ROI in business decisions?
To compare the efficiency of different investments
What is a challenge of using ROI in business decisions?
It is challenging to estimate future benefits and intangible gains
What is the formula to calculate ROI?
ROI = (Net Profit / Investment Cost) x 100%
What is a benefit of using ROI in business decisions?
It helps to make budget-efficient decisions
Why is ROI important in developing future marketing strategies?
It helps to identify the most profitable marketing strategies
What is an example of a business decision where ROI can be used?
Purchasing a new tool or equipment
What is the main reason ROI is used to compare the efficiencies of multiple assets?
To identify the most profitable investments
What is an example of a business decision that utilizes ROI?
All of the above
What is the benefit of using ROI in business decisions?
It allows for budget efficiency
What is a limitation of using ROI in business decisions?
It has difficulty in estimating future benefits and intangible gains
What is the result of a higher ROI ratio?
A higher benefit earned
What is the purpose of ROI in analytics?
To develop future marketing strategies
Test your knowledge of ROI, a crucial financial metric that evaluates the profitability of an investment. Learn how it's calculated and its importance in decision-making and marketing strategies.
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