return on equity roe is considered to be a better measure of a busines
Question
Return on equity (ROE) is considered to be a better measure of a business's performance than net income percent. Why is this? O ROE considers a business's operating expenses while net income percentdoes not O ROE considers the total amount of funds available to the manager - bothdebt and owners' equity; net income percent considers only funds investedby the owners O ROE considers both profit and the investment needed to generate the profit3Bnet income percent considers only profit