To solve this problem, we need to determine two things: which company is more efficient in using its assets to generate profits, and which company has a higher return on investment (ROI).
1. Efficiency in Using Assets to Generate Profits:
- Company A has an ROI of 20%.
- Company B has an ROI of 24%.
Since efficiency in using assets to generate profits is directly linked to their ROI, higher ROI indicates better efficiency. Comparing the two companies:
- 24% (Company B) is greater than 20% (Company A).
Therefore, Company B is more efficient in using its assets to generate profits.
2. Return on Investment (ROI):
- ROI is used to measure the profitability of an investment.
- Company A's ROI = 20%.
- Company B's ROI = 24%.
Comparing the ROIs directly:
- 24% (Company B) is greater than 20% (Company A).
Hence, Company B has a higher return on investment than Company A.
In summary:
- Company B is more efficient in using its assets to generate profits.
- Company B has higher return on investment than Company A.
Thus, the correct statements are:
- Company B is more efficient in using its assets to generate profits.
- Company B has higher return on investment than Company A.
Therefore, the true statements from the options given are:
- Company B is more efficient in using its assets to generate profits.
- Company B has higher return on investment than Company A.
