DECA Financial Consulting Practice Exam 2025 - Free DECA Financial Consulting Practice Questions and Study Guide

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What does ROI stand for in financial consulting?

Return on Investment

ROI stands for "Return on Investment." This is a key financial metric that is used to measure the probability of gaining a return from an investment. It evaluates the efficiency or profitability of an investment relative to its costs, often expressed as a percentage. Investors and financial consultants use ROI to compare the profitability of different investments and to decide where to allocate resources in order to maximize returns.

The other options lack the precise definition and established usage found in financial contexts. For example, "Rate of Income" does not capture the essence of evaluating investment performance, while "Return on Inventory" and "Revenue of Investment" are not recognized financial terms. The focus on return relative to investment costs is what makes "Return on Investment" a fundamental concept in financial analysis and consulting.

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Rate of Income

Return on Inventory

Revenue of Investment

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