Question
A company can potentially increase its return on investment (ROI) by Blank______.
Multiple select question.
increasing sales
borrowing additional funds
investing in operating assets
reducing operating expenses
Multiple select question.
increasing sales
borrowing additional funds
investing in operating assets
reducing operating expenses
Answers
GPT-4o mini
A company can potentially increase its return on investment (ROI) by:
1. **Increasing sales** - Higher sales generate more revenue, which can increase profits and, consequently, ROI.
2. **Borrowing additional funds** - If the borrowed funds are invested wisely and generate returns that exceed the cost of the debt, this can increase ROI.
3. **Investing in operating assets** - Investing in assets that improve operational efficiency or productivity can lead to higher returns, thereby increasing ROI.
4. **Reducing operating expenses** - Lowering costs while maintaining or increasing revenue will raise net profit, thus improving ROI.
All of the options listed have the potential to contribute to an increase in ROI when executed effectively.
1. **Increasing sales** - Higher sales generate more revenue, which can increase profits and, consequently, ROI.
2. **Borrowing additional funds** - If the borrowed funds are invested wisely and generate returns that exceed the cost of the debt, this can increase ROI.
3. **Investing in operating assets** - Investing in assets that improve operational efficiency or productivity can lead to higher returns, thereby increasing ROI.
4. **Reducing operating expenses** - Lowering costs while maintaining or increasing revenue will raise net profit, thus improving ROI.
All of the options listed have the potential to contribute to an increase in ROI when executed effectively.