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Understanding Return on Investment

G. Thomas Friedlob · Franklin James Plewa

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Financial Analysis and Corporate Governance Accounting and Organizational Management Financial Reporting and Valuation Research

Abstract

Whether a business owner, manager, or investor, you're undoubtedly concerned with achieving maximum profit and maintaining effective management. One way to measure these two standards is by using return on investment (ROI), the most commonly used indicator of company profit and management performance. Knowing the ins and outs of ROI is essential, and while it's easy to understand the importance of this concept, it's not always easy to understand ROI itself

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