In the Besley and Persson model, increasing legal capacity causes higher returns on investments because the government has more money, it builds more roads and public transit.
Choosing a company with a high return on investment is crucial for investors since it shows that the business is booming in turning a profit from the investment. If there are other investment options with a positive ROI, investors will often steer clear of a negative ROI venture.
The profit you realize from your investments is the return. The ratio of net profit to the entire cost of the asset is how ROI is typically defined. When ROI is used to determine the benefits and monetary returns of your investment, it is most helpful to your business goals when it pertains to something specific and measurable.
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