Return of investment and return on investment

1. What is the management cycle and how does it relate to strategic and short-term planning?

2. What is the sequence in the planning phase of the management cycle and how does it differ from the sequence in the performing phase?

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3. What are a business’s operating profits generated for?

1. What is the distinction between return of investment and return on investment?

2. How does time impact investment decisions?

3. How does the size of the investment impact investment decisions?

1. How does rate of return on an investment differ from return on investment? What are the advantages of using a rate of return on investment when choosing among alternative investments?

2. Under what conditions does a negative rate of return occur?

3. What is risk?

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