summing up an abbreviation is a shortening of a word or a phrase an acronym is an abbreviation that forms a word an initialism is an abbreviation that uses the first letter of each word in the phrase thus some but not all initialisms are acronyms
ROI, or return on investment, is a common business term used to identify past and potential financial returns. Managers and executives look to the ROI of a project or endeavor because this indicates how successful a venture will be.
ROI measures the amount of return on an investment relative to the investmentâs cost. To calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio.The return on investment formula: In the above formula, Gain from Investmentâ refers to the proceeds obtained from the sale of the investment of interest.o calculate ROI, the benefit (or return) of an investment is divided by the cost of the investment, and the result is expressed as a percentage or a ratio. The return on investment formula: In the above formula, Gain from Investmentâ refers to the proceeds obtained from the sale of the investment of interest.