ISM Exam CPSM1 Topic 2 Question 84 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 84
Topic #: 2

[All CPSM1 Questions]

The ratio of annual operating income to the total capital put in the business is called:

AReturn on investment

BReturn on asset

CProfit margin

DOperating efficiency

Show Suggested Answer

Suggested Answer: A

by Stephaine at Apr 13, 2024, 01:24 AM

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Stefany

12 months ago

I believe it's A) Return on investment because it reflects how efficiently the capital is being utilized.

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Rodney

1 years ago

I'm not sure. I think it could also be C) Profit margin.

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Jacob

1 years ago

I agree with Return on investment makes sense in this context.

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Millie

1 years ago

I think the answer is A) Return on investment.

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Kenneth

1 years ago

Return on investment makes more sense to me, as it shows the return on the total amount invested.

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Nancey

1 years ago

I believe it's profit margin, since it measures the profitability of the business.

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Jolene

1 years ago

I think it could also be return on asset, depending on the calculation method.

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Kenneth

1 years ago

The ratio of annual operating income to total capital put in the business is called return on investment.

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Lili

1 years ago

Guys, guys, I've got a great mnemonic for this: 'ROI, ROA, and OP-EFF, which one will make me the best?'

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Malcolm

1 years ago

I dunno, man. 'Profit margin' also seems like it could be the answer. Gotta think this through carefully.

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Florinda

1 years ago

I believe it's A) Return on investment

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Francoise

1 years ago

C) Profit margin

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Craig

1 years ago

I think it's B) Return on asset

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Kanisha

1 years ago

A) Return on investment

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Roosevelt

1 years ago

Wait, wait, wait. Isn't it 'Operating efficiency'? That sounds more like the ratio we're looking for.

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Belen

1 years ago

Ooh, I think I've got this! Isn't it 'Return on investment'? That's the ratio of annual operating income to the total capital, right?

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Viva

1 years ago

Hmm, this is a tricky one. Return on investment and return on asset seem like viable options, but I'm not sure if they're quite the right fit.

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Isreal

1 years ago

Ah, this question seems straightforward enough. I'm pretty confident I know the answer, but let's see what the others think.

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