return-on-investment

Vocabulary Word

Definition

'Return-on-investment' or 'ROI' is often used in business. It means finding out how well a business investment has worked out. It's like saying 'Did I get my money's worth after making this investment?'

Examples in Different Contexts

In finance, 'return on investment' (ROI) measures the profitability of an investment compared to its cost. An investor might say, 'The ROI on this real estate investment exceeded expectations, proving it was a wise choice.'

Practice Scenarios

Marketing

Scenario:

For the upcoming product launch, we have several promotional strategies in mind. We need to gauge which one might be the most successful.

Response:

Absolutely, we need to forecast the return on investment for each strategy to inform our decision.

Tech

Scenario:

Our app has been having performance issues lately. We're considering investing in a different server architecture.

Response:

Alright, let's calculate the ROI of investing in the new server architecture and see how it impacts our bottom line.