Which of the Following Statements Is Most Correct

question 27

Multiple Choice

Which of the following statements is most correct?

• A) Actions which increase net income will always increase net cash flow.
• B) One way to increase EVA is to maintain the same operating income with less capital.
• C) One drawback of EVA as a performance measure is that it mistakenly assumes that equity capital is free.
• D) Answers a and b are correct.
• E) Answers a and c are correct.

Understand the concepts of national debt and budget deficits/surpluses.

Analyze the impact of fiscal policies on the economy, including during recessions and periods of full employment.

Explain the role and effects of automatic stabilizers in the economy.

Compare and contrast the views of Keynesian and conservative economists on the crowding-out effect.

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Definitions:

Standard Work

A set of instructions and procedures designed to ensure that tasks are performed consistently and efficiently across an organization.

Position Pay

The compensation or salary associated with a specific job role within an organization.

Team Appraisal

A method of performance evaluation where a team's overall effectiveness, contributions, and outcomes are assessed rather than evaluating individual members separately.

Implicit Assumption

An unspoken premise or belief that underlies an argument or decision, often taken for granted without explicit statement.