Ratios to measure different kinds of performance 1 Many financial performance measures are ratios of some return over some investment base. Why is such a concept of performance important in business?

2 With your answer to question 1 in mind, how might you measure the performance of each of the following investments owned by Kath Hart?

a Her $1200 in a savings account at Solid Bank.

b Her investment of $15 000 in a little consulting business she runs.

c Her sports car.