Test on Chapter 3 MBA (Dist.Mgt)

A company invested Rs.120,000 in a new production facility that generated Rs.80,000 in sales revenue. What is the ROI for this investment?

• -0.3333
• -0.25
• 0.25
• 0.33

How can businesses use GM ROI to make strategic decisions in sales and distribution?

• By focusing solely on increasing revenue
• By prioritizing the products with the highest gross margin
• By minimizing all operating expenses
• By reducing the number of distribution channels

ROI (Return on Investment) is a financial metric used to assess:

• Sales revenue generated by the sales team
• Profit margins of products sold in distribution channels
• The efficiency and profitability of an investment
• The market share of a company in the industry

In the context of ROI, a value greater than 1 indicates that:

• The investment has not been profitable
• The investment has broken even
• The investment has generated positive returns
• The investment has generated losses

What does a negative ROI value indicate?

• The investment has been successful and profitable
• The investment has resulted in a loss
• The investment has resulted in no change in value
• The investment has been returned to the investor

What is the main purpose of calculating ROI in sales and distribution?

• To measure the efficiency of the sales team
• To assess the profitability of investments made
• To evaluate the effectiveness of marketing campaigns
• To determine the inventory turnover rate

GM ROI is calculated by dividing the gross margin by which of the following?

• Total sales revenue
• Operating expenses
• Net profit
• The initial investment

How can businesses use GM ROI to make strategic decisions in sales and distribution?

• By focusing solely on increasing revenue
• By prioritizing the products with the highest gross margin
• By minimizing all operating expenses
• By reducing the number of distribution channels

Company A has a GM ROI of 0.4, and Company B has a GM ROI of 0.6. Which company is more profitable in terms of gross margin?

• Company A
• Company B
• Both companies are equally profitable
• Insufficient data to determine

In GM ROI, what does a value greater than 1 indicate?

• The investment has resulted in a loss.
• The investment has broken even
• The investment has generated positive returns
• The investment has doubled in value.