Between 2010 and 2016, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC) from $5 million to $25 million. The company was able to do this by expanding its product line to include a wider variety of flavors. The $20 million increase in its ROIC between 2010 and 2016 can be referred to as which of the following

Profit growth

Explanation:

If between 2010 and 2016, Blue Drinks, a multinational beverage corporation, increased its return on invested capital (ROIC) from $5 million to $25 million. The $20 million increase in its ROIC between 2010 and 2016 can be referred to as Profit growth

Return on invested capital or simply return on equity / return on investment is a measure of profitability that  expresses net income as a percentage of net assets or equity.

The measure attempts to look at how much the money invested into the business has yielded over time.

Hence any growth in this measure can be referred to as growth in profitability,

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30