Amount earned as a result of an investment

Amount earned as a result of an investment

• A. Branding
• B. Market share
• C. Return on investment
• D. Profit margin

Answer: (C)

Understanding how much an investment earns requires looking at the return relative to what was invested. This is measured by return on investment, usually shown as a percentage, computed as net profit from the investment divided by the cost of the investment. It directly answers how much was earned from deploying that capital and indicates how efficiently the investment performed. Branding focuses on building recognition, market share on a company’s portion of total sales, and profit margin on profit relative to revenue—not on earnings tied specifically to an initial investment. So ROI best captures the amount earned as a result of an investment.

Understanding how much an investment earns requires looking at the return relative to what was invested. This is measured by return on investment, usually shown as a percentage, computed as net profit from the investment divided by the cost of the investment. It directly answers how much was earned from deploying that capital and indicates how efficiently the investment performed. Branding focuses on building recognition, market share on a company’s portion of total sales, and profit margin on profit relative to revenue—not on earnings tied specifically to an initial investment. So ROI best captures the amount earned as a result of an investment.