BUSINESS ADMINISTRATION
MARKETING MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Market share
|
|
|
Return on investment
|
|
|
Competition
|
|
|
Cost-Benefit Analysis
|
Detailed explanation-1: -Return on invested capital (ROIC) quantifies how well a company generates cash flow relative to the capital it invested in its business. It is defined as net operating profit less adjusted taxes divided by invested capital, usually expressed as a percentage.
Detailed explanation-2: -ROI is a simple calculation that shows the amount an investment returns compared to the initial investment amount. IRR, on the other hand, provides an estimated annual rate of return for the investment over time and offers a “hurdle rate” for comparing other investments with varying cash flows.
Detailed explanation-3: -Return on Investment (ROI) A calculation of the monetary value of an investment versus its cost. The ROI formula is: (profit minus cost) / cost. If you made $10, 000 from a $1, 000 effort, your return on investment (ROI) would be 0.9, or 90%.
Detailed explanation-4: -There are at least three contributing factors: economies of scale, market power, and management quality.
Detailed explanation-5: -Your return on investment, or ROI, is basically the return on your product. While the margin indicates your unit profit in absolute terms, or in relation to the sales price, you calculate the ROI as the unit contribution margin divided by your purchase price.