If ROI equals 0, which statement is true?

Unlock all questions

This demo includes only 20 questions. Upgrade to access hundreds of questions, flashcards, exam simulations, and disable ads.

Full question bankExam simulationsFlashcards
From $25.99Unlock all

Prepare for the WGU MKTG 6040 D381 E-Commerce and Marketing Analytics Exam. Use flashcards and multiple choice questions with hints and explanations. Ensure your success on this crucial exam!

Multiple Choice

If ROI equals 0, which statement is true?

Explanation:
ROI measures how much profit you earn per dollar spent. If ROI is 0, the net profit is zero, meaning revenue just covers the costs. In other words, there is no net gain or loss relative to what was spent. A quick example: spend $1,000 on the campaign and generate $1,000 in value; net profit is $0, so ROI = 0%. This describes a break-even outcome, but the key takeaway is that there is no net profit relative to costs. A positive ROI means a profit, while a negative ROI means a loss.

ROI measures how much profit you earn per dollar spent. If ROI is 0, the net profit is zero, meaning revenue just covers the costs. In other words, there is no net gain or loss relative to what was spent. A quick example: spend $1,000 on the campaign and generate $1,000 in value; net profit is $0, so ROI = 0%. This describes a break-even outcome, but the key takeaway is that there is no net profit relative to costs. A positive ROI means a profit, while a negative ROI means a loss.

More Multiple Choice Questions
Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy