Business A-Level
return on investment
What return on investment means in Business A-Level, as defined for AQA.
Definition of return on investment
Check what you remember
Read the wording for your board, then hide it and explain return on investment in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: AQA
The return earned divided by the capital put in and shown as a percentage, letting a board rank a new machine against a new store against leaving the money on deposit.
Topics that use return on investment
- Setting financial objectives (AQA A-Level)
Related terms
- control and motivation
- overtrading
- cash flow objectives
- gross profit
- operating profit
- profit for the year
- profit margins
- revenue, cost and profit targets
Using return on investment in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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