ENTREPRENEURSHIP

Detailed explanation-1: -ROI deals with the money you invest in the company and the return you realize on that money based on the net profit of the business. ROI tries to directly measure the amount of return on an particular investment, relative to the investment’s cost. ROI is a popular metric because of its versatility and simplicity.

Detailed explanation-2: -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%. This can be also usually obtained through an investment calculator.

Detailed explanation-3: -Return on investment (ROI) is an approximate measure of an investment’s profitability. ROI is calculated by subtracting the initial cost of the investment from its final value, then dividing this new number by the cost of the investment, and finally, multiplying it by 100. ROI has a wide range of uses.

Detailed explanation-4: -Return on investment is a simple ratio that divides the net profit (or loss) from an investment by its cost. Because it is expressed as a percentage, you can compare the effectiveness or profitability of different investment choices.

Detailed explanation-5: -Profitability is the primary goal of all business ventures. Without profitability the business will not survive in the long run. So measuring current and past profitability and projecting future profitability is very important.