Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Controlling

Question:
Which of the following is the correct formula for calculating Return on Investment?
Options:
Net income before interest and tax /Capital Employed
Net Income after Tax, depreciation and Interest/Capital Employed
Net Income before interest, tax and depreciation/Capital Employed
Net income before interest, tax and depreciation/ Shareholder's Funds
Correct Answer:
Net income before interest and tax /Capital Employed
Explanation:
RoI = Net income before interest and tax/ Capital Employed