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Rutiri-Entrep. Chap3
Return on Investment
Question | Answer |
---|---|
Investors want to get more out of a project or ________________ than they put in. | Business |
The "extra" earned is ______________. | profit |
_____________, energy, or money put into a business is investment. | Time |
Investors use profit and ____________ to calculate return on investment. | investment |
Entrepreneurs usually calculate ROI as a ________________. | percentage |
_________________ means "part of every hundred." | Percentage |
Investment involves _____________. | risk |
Time, energy, or money invested can be ______________. | lost |
Risk/return relationship: higher risk should mean higher return. | True |
Risk and returns can be __________ in small business. | high |
Entrepreneurs cannot reduce a risk when it concerns business. | False |
Smaller investments can reduce a risk when it concerns business. | True |
Keeping cost low is another way of saying what? | with sweat equity |
Entrepreneurs do not set ROI goals. | False |
College education has a high ROI. | True! |
____________ give entrepreneurs financial and personal targets to aim for. | Goals |
Rule of __________: divide that number by return (or interest) rate = years needed to double an investment. | 72 |
72 / 12% = what? | 6 years to double a sum |
72 / 3% = what? | 24 years to double a sum |
72 / 5% = what? | 14.4 years to double a sum |
72 / 7% = what? | 10.28 years to double a sum |
72 / 18% = what? | 4 years to double a sum |
72 / 24% = what? | 3 years to double a sum |
18 out of 100 pennies is what percent? | 0.18 |
Investing your own time and money | sweat equity |
A person with a bachelor's degree will earn about a ______________ dollars more over a lifetime than someone who has only a high school diploma. | million |
To track your goals and know when you are achieving them, make sure your goals are SMART (Specific, Measurable, Attainable, Relevant, and Time Bound) | True |