1 answer

Assuming the factors will remain the same, an decrease in expenses will result in a decrease...

Question:

Assuming the factors will remain the same, an decrease in expenses will result in a decrease in return on investment.

True/False


Answers

False

A decrease in expense and other factors remaining same would lead to increase in return on investment.

Because, if expenses are decreasing and other factors for instance Revenue, capital are same that means will lead to earnings and therby ROI increases.

Thus, we can say:

Decrease Expenses 》 other factors i.e. Revenue, Capital, Market Conditions Constant 》 Leads to Increase in ROI

.

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