RETURN ON INVESTMENT Definition

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RETURN ON INVESTMENT (ROI) is a profitability measure that evaluates the performance of a business. ROI can be calculated in various ways. The most common method is Net Income as a percentage of Net Book Value (total assets minus intangible assets and liabilities).

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LIMITED LIABILITY is one that does not go beyond the owners investment in the business.

COST/INCOME RATIO is total expenses divided by the sum of total income.

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