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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 401 Weeks Ago, 2 Days Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Return on investment (ROI) measures the efficiency of a business’s use of its operating assets and is the ratio of the business’ net operating income to the value of its operating assets. That means that the higher the business’s net operating income and the lower the value of the business’s operating asset, the better its ROI. But, ROI can be misleading. For instance, many Internet businesses like Groupon and LinkedIn do not have much in the way of operating asset, but they have a lot of operating income. What does ROI disclose about how efficiently these kinds of businesses are operating? Are there better measures of how well managed companies like Groupon and LinkedIn are?
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