The correct answer is A. Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to directly measure the amount of return on a particular investment, relative to the investment’s cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment. The result is expressed as a percentage or a ratio.
Inventory turnover ratio is a measure of the efficiency with which a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory. A higher inventory turnover ratio indicates that a company is selling its inventory more quickly and efficiently.
Net profit to sales ratio is a measure of a company’s profitability. It is calculated by dividing net profit by net sales. A higher net profit to sales ratio indicates that a company is more profitable.
Proprietary ratio is a measure of a company’s financial leverage. It is calculated by dividing total debt by total assets. A higher proprietary ratio indicates that a company is more leveraged.
In conclusion, the overall performance of a business unit is measured by return on investment (ROI). ROI is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments.