What is ROI? Simple Explanation for BBA Students With Examples
Return on Investment explained in plain English with worked examples.
<h2>ROI in One Sentence</h2><p>ROI measures how much money you made compared to how much you invested.</p><h2>The Formula</h2><p>ROI = (Net Profit / Cost of Investment) × 100</p><h2>Example</h2><p>You invest PKR 100,000 in a side business and earn PKR 130,000. Net profit = 30,000. ROI = 30%.</p><h2>Why It Matters</h2><p>Compare investments fairly regardless of size.</p><h2>FAQ</h2><p><strong>Is high ROI always better?</strong> Not always. Consider risk and time.</p>
AI Study Assistant
Summarize this article or ask a question about it.
Was this helpful?
Ahmed Raza
Author
BBA student at University of Karachi. Passionate about AI tools and helping students study smarter.
Comments (0)
Be the first to comment.
You Might Also Like
Porters Five Forces Explained for BBA Students With Real Examples
Porters Five Forces is the most commonly assigned framework in BBA strategy courses — and the most commonly fumbled in submissions. This guide breaks down each force with examples.
Cash Flow vs Profit: The Difference Every BBA Student Must Understand
A profitable company can still go bankrupt. A loss making company can survive for years. The difference is cash flow, and most BBA students confuse the two until it kills them in exams.
What is Supply and Demand? BBA Economics Made Simple
The clearest explanation of supply, demand and equilibrium you will read — with real Pakistani market examples.