Small Business Investing

Rois and Small Businesses

Why is Return on Investment an essential measurement standard for businesses?

ROI is an essential measurement for businesses because it allows the business owner/investor the opportunity to see how effectively the business is using its cash and equity resources. Experts at The Houston Chronicle point out that this important metric can be used by both small and large companies, since both types of companies generally have scarce financial resources, and small companies are more limited in what they may be able to do with their financial resources, since they lack the myriad financing options that large companies may access.


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