If you spend ₹2,00,000 to open a coffe

CUET Preparation Today

Start Free Mocks

Home Questions XUAKYBQ8PH

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:

If you spend ₹2,00,000 to open a coffee shop and make a profit of ₹20,000 in one year calculate ROI.

Options:

20%

10%

Correct Answer:

10%

Explanation:

The correct answer is option (3) - 10%

ROI= ROI = Net Profit x 100/Total Capital Invested
Total Capital Invested= Equity + Loans=2,00,000
ROI=20,000*100/2,00,000=10%