Post Utme Ims U 2019 Commerce Question 6

Practice objective / multiple choice question 6 from the 2019 Post Utme Ims U Commerce examination.

Post Utme Ims U 2019 Commerce Objective / Multiple Choice
Question 6 POST_UTME_IMS_U • 2019 • COMMERCE • objective

A company's sole trader is considering expanding its business to include a new product line. The new product line has a higher profit margin, but it also requires a significant investment in new equipment and training. Which of the following financial ratios would be most useful in determining whether the company should invest in the new product line?

Answer Options

A. Debt-to-Equity Ratio
Correct Answer B. Return on Investment (ROI)
C. Current Ratio
D. Asset Utilization Ratio
Correct Answer
B
Correct Option:
Return on Investment (ROI)

About This Question

This is Post Utme Ims U 2019 Commerce Question 6. It is one of the objective questions from the 2019 Post Utme Ims U Commerce examination.

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