__________ Is commonly used to measure the performance of a business entity.

Question: __________ Is commonly used to measure the performance of a business entity.

Return on equity (ROE) is commonly used to measure the performance of a business entity. It is calculated by dividing the net income by the shareholders' equity. ROE indicates how well a company is using its shareholders' funds to generate profits. A higher ROE means that the company is more efficient and profitable.

In this blog post, we will discuss the advantages and disadvantages of using ROE as a performance metric, and how to interpret it in different contexts. We will also provide some examples of companies with high and low ROE, and what they imply for their financial health and growth prospects.

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