The 'Return on Investment' (ROI) formula is: MCQ with Answer and Explanation

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The 'Return on Investment' (ROI) formula is:

A. Net profit / Capital employed

B. Sales / Capital employed

C. Net profit / Sales

D. Gross profit / Sales

Answer: Option A

Solution (By JKSSB Mock Tests)

ROI = Net profit before interest and tax / Capital employed, or sometimes PAT/CE. Typically, Net profit / Capital employed.

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Question #1

What is the primary objective of financial management?

A. Maximizing profits

B. Maximizing sales

C. Maximizing market share

D. Maximizing shareholder wealth

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Correct Answer: Option D

Explanation:
The primary objective of financial management is to maximize the wealth of shareholders, reflected in the market price of shares.

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Question #2

What is the maximum rate of CGST prescribed under the CGST Act?

A. 14%

B. 20%

C. 18%

D. 28%

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Correct Answer: Option B

Explanation:
The maximum rate of CGST is capped at 20% by the Act, making the combined maximum GST (CGST + SGST) 40%.

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Question #3

GST is a destination-based tax. This means:

A. Tax is retained by the centre

B. Tax accrues to the state where goods/services are consumed

C. Tax is divided equally among all states

D. Tax accrues to the origin state

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Correct Answer: Option B

Explanation:
Under destination principle, the consuming state gets the SGST portion.

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