Which of the Following Statements Is Most Correct About Economic

question 7

Multiple Choice

Which of the following statements is most correct about Economic Value Added (EVA) ?

• A) If a company has no debt, its EVA equals its net income.
• B) If a company has positive ROE, its EVA must also be positive.
• C) A company's EVA will be positive whenever the cost of equity exceeds the ROE.
• D) All of the statements above are correct.
• E) None of the statements above is correct.

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Definitions:

Organizational Values

Fundamental beliefs or principles that guide the behavior and decision-making processes within an organization.

Organizational Culture

Common values, beliefs, and standards that guide how employees perceive, feel, and act within a company.

Social Control

Mechanisms, strategies, and practices that societies or institutions employ to regulate individual or group behavior, aiming to ensure conformity to established norms and rules.

Corporate Cults

Refers to companies that create an environment with intense organizational identification and loyalty, often to the exclusion of outside influences or perspectives.