Low rates of return and delousing rates of return indicate that the owner’s assets are not generating adequate income
Share prices would certainly decline and it would be difficult to raise funds for expansion
The reward the owners receive for using and risking their funds (equity finance)
Owners concerned about the return they will receive on the money they have invested rather than the return on total assets of the business
A high level is desirable numbers below 10% would be unhappy but above 20% is considered excellent
