The Following Are Advantages of Using EVA as a Measure

question 1

Multiple Choice

The following are advantages of using EVA as a measure of performance except:

• A) EVA is a substitute for explicit monitoring by top management
• B) EVA makes the cost of capital visible to the operating management hence reduce capital employed
• C) EVA does not measure present value
• D) EVA highlights the parts of business that are not performing

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Definitions:

Predictable Relationship

A relationship in which behaviors and patterns have a consistent and expected outcome or response.

Attachment Styles

Patterns of behavior in relationships reflecting the emotional bond between individuals, developed from early interactions with caregivers.

Cultural Differences

Variations in the beliefs, values, habits, norms, and behaviors among different cultures.

Stage Theories

Theories that describe human development, intelligence, and other psychological functions as occurring in distinct phases or stages.