Enter To Search JJplace Glossary by Keyword:


Banner 4

JJplace Computers & EBusiness!

“R” Word & Phrase Definitions!

JJplace Glossary

To return to JJplace Computers & eBusiness pages, Click your link of interest in the Left Column!

| 0-9 | A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

ROI or Return On Investments
The short explanation of ROI is, ‘ the expense to an individual or company to own or do something compared to the benefit or profit this individual or company seeks as a measurable result’.  Measuring the ROI supports a surprising number of different industries.

For a simple example of the concept, let us assume you are self-employed and your ‘net profit’ (money after all expenses) is $1000 (One Thousand U.S.D) per week.  Your average work week is fifty (50) hours over 5 days.  This means your average net profit per hour is $20.  (Do not confuse NET Profit with Gross Profit.  Gross is more money but- NOT your money to keep.)  In your work, you realize that you are using about Four (4) hours per day on the telephone.  To illustrate this we have:
$1000 = 1 Week Net Profit
$1000 = 5 Days Work
$1000 = 50 hours over 5 Days or 10hr/day
$1000 = 50 x $20/hour Net Profit
$1000 = $20 x (50 x [6-work-hr/day + 4-phone-hr/day])

You believe that if, if you used the four (4) daily telephone hours to perform more customer work you may increase you work by another 40% (10hrs/day = 6wkhrs + 4PhHrs) or $400.  Four (4) is 40% of 10, thus, by proportions, 40% more work should yield 40% more profit!  So you hire a teenage, part-time Phone receptionist for 4 hours daily, and pay them $10 per hour daily for 20 hours per week.  The cost to you is $200.  You are expecting to earn $400.  The ROI on your investment of $200 is Gross $400 and a Net Profit of $200!  To illustrate further, we have:
$1000 = Original 1 Week Net Profit
$200 = Expense Investment in hiring someone part-time.
$800 = Your New Net Profit after hiring help
$400 = 40% more income as a Return on your additional working time.
$1200 = Your new Net Profit.
$400 = Your new Gross ROI.
$200 = Your new Net ROI. Your real return for investing YOUR money in help.

This is an extremely simplistic application of the theories of ROI and business.  There are many other factors that will effect a company or Entrepreneur's ROI...training, taxing, machinery, repair, obsolete software, interest rates, pilferage, etc.  Anything and everything, that is an expense to run a business, is compared to the profit of the business in the business return. Every incidental additional outflow, may be measured for it's return. However, an accountant's Profit and Loss Reports is a good STARTING POINT for measuring a ROI.
On the Internet, a router is a device or, in some cases, software in a computer, that determines the next network point to which a packet should be forwarded toward its destination.  The router is connected to at least two networks and decides which way to send each information packet based on its current understanding of the state of the networks it is connected to.  A router is located at any gateway (where one network meets another), including each Internet point-of-presence.  A router is often included as part of a network switch.

Hurry And Click. There Is A Limited Time Period and Quantity-To-Be-Sold By Some Vendors At These Prices!