When Using the Income Statement Approach to Opportunity Assessment, Return

Multiple Choice

When using the income statement approach to opportunity assessment, return on investment (ROI) is calculated by __________.

A) multiplying market potential by estimated retail market share
B) dividing the initial investment required to start the business by the projected net income
C) subtracting the initial investment required to start the business from the projected net income
D) multiplying the cost of goods sold by projected expenses and then subtracting the initial investment
E) None of the answers apply.